Is WWE Losing Money?

Is WWE losing money? This is a question that has been on the minds of many fans lately. WWE’s live event attendance has been down, and its stock price has taken a hit. But is WWE really losing money?

WWE’s Financials

WWE is a publicly traded company and as such, is required to release quarterly and annual reports detailing their financial performance. While WWE’s revenue and profit have grown steadily over the past few years, there are some signs that the company is starting to lose money. In this article, we’ll take a look at WWE’s financials and see if the company is in trouble.

WWE’s quarterly revenue

WWE’s quarterly revenue has been steadily declining over the past few years. In Q1 2019, WWE reported $181.0 million in revenue, which was down 7% from the $195.0 million they reported in Q1 2018. This decline is mainly due to a decrease in WWE’s media rights fees and live event revenue.

WWE’s media rights fees are the largest contributor to their quarterly revenue, making up 53% of their total revenue in Q1 2019. Media rights fees are the fees that WWE charges to its TV networks (USA Network, FOX, and NBC) for the right to air WWE programming. In Q1 2019, WWE’s media rights fees decreased by 8% from Q1 2018, due to lower viewership of WWE programming on USA Network and FOX.

Live event revenue is the second largest contributor to WWE’s quarterly revenue, making up 27% of their total revenue in Q1 2019. Live event revenue includes ticket sales, merchandise sales, and sponsorships at WWE live events. In Q1 2019, WWE’s live event revenue decreased by 4% from Q1 2018 due to a decline in ticket sales and merchandise sales at live events.

WWE’s operating income

In 2015, WWE announced that its operating income had increased from $14.7 million in 2014 to $27.1 million. This was largely attributed to the company’s improved live event and television revenues, as well as its cost-cutting efforts.

However, despite this increase in operating income, WWE still reported a net loss of $8.4 million for the year. This was due to a number of factors, including a $15.9 million impairment charge related to the company’s XFL subsidiary and a $5.5 million settlement with the U.S. Securities and Exchange Commission (SEC).

WWE’s Competitors

WWE’s main competitors are AEW and NXT. While AEW is a startup, NXT has been around for years. Both companies are doing well, with AEW being especially popular with younger audiences. WWE is losing money because their ratings are down and they are losing viewers to their competitors.

AEW

WWE’s main competitor right now is All Elite Wrestling, commonly known as AEW. AEW was founded in 2019 by Tony Khan, the co-owner of Jacksonville Jaguars. It is based on Jacksonville, Florida and their shows are currently being aired every Wednesday night on TNT. They have already aired one Pay-Per-View event and their next one is scheduled for May 23, 2020.

AEW has already signed some big names such as Chris Jericho, Kenny Omega, Hangman Page, PAC (f.k.a. Neville in WWE), Jon Moxley (f.k.a. Dean Ambrose in WWE), and Cody Rhodes (son of WWE Hall of Famer Dusty Rhodes and brother of WWE Superstar Goldust).

NJPW

New Japan Pro-Wrestling Co., Ltd. (新日本プロレス株式会社 Shin Nihon Puroresu Kabushiki-gaisha), doing business as New Japan Pro-Wrestling (NJPW) and sometimes referred to as NJPW of America or simply NJPWA,[7][8] is a Japanese professional wrestling promotion based in Nakano, Tokyo.[3] Founded in January 1972 by Antonio Inoki, the promotion was sold to Yuke’s, who later sold it to Bushiroad in 2012.

NJPW is the largest professional wrestling promotion in Japan and the second largest promotion in the world, behind the American World Wrestling Entertainment (WWE).[9] It was affiliated with the National Wrestling Alliance at various points between its foundation and mid-2005. NJPW has had agreements with other wrestling promotions such as WCW,[10] TNA,[11] ROH[12] and Lucha Underground.[13][14][15]

In 2010, NJPW announced a partnership with the American television channel AXS TV, which aired select English-language shows,[16][17][18] starting with an event held in New York City in 2011.[19] In 2013, Bushiroad took over full control of AXS TV’s programming content under a deal signed with Mark Cuban’s HDNet through which AXS TV effectively became an extension of New Japan’s United States operations,[20][21][22] airing live events held by the promotion—alongside broadcasts of other promotions such as Women of Wrestling—as well as Samoa Joe’s weekly talk show Superstars of Wrestling.[23 seniority and experience with accounting principles.

WWE’s Viewership

WWE’s viewership has been on a steady decline over the past few years. In 2020, the company lost over 30% of their viewers. This is a huge concern for the company, as they are losing a large chunk of their revenue. WWE has been trying to combat this decline by changing their programming and signing new talent. However, it remains to be seen if these changes will be enough to bring back their lost viewers.

WWE’s ratings

Since the early 2000s, WWE’s ratings have been steadily declining. In 2000, WWE’s Raw program averaged a 5.7 rating, which was the highest rating the company had received in over six years. In 2019, WWE’s Raw program averaged a 1.8 rating, which was the lowest rating the company had received in over nineteen years. The decline in ratings has coincided with a decline in WWE’s stock price.

WWE’s viewershipdeclined sharply in 2016 after the brand split. In 2015,Raw averaged 3.3 million viewers per week.In 2016, after the brand split, Raw averaged 2.9 million viewers per week, a decline of 12%. SmackDown saw a similar decline in viewership, going from 2.8 million viewers per week in 2015 to 2.5 million viewers per week in 2016, a decline of 11%.

WWE’s live event attendance

Though WWE’s live event attendance has been down in recent years, this number does not reflect the company’s total revenue. Rather, WWE’s total revenue has increased in recent years. The decrease in live event attendance is likely due to the company’s decision to air more events on its Network, which requires a monthly subscription fee.

WWE’s Stock Price

WWE is a publicly traded company, and as such, their stock price is something that is always under close scrutiny. Recently, WWE’s stock price has been on a bit of a roller coaster ride.

WWE’s stock price history

WWE’s stock price has been on a roller coaster ride in recent years, reaching an all-time high in February 2014 before tumbling sharply later that year. The stock later recovered some of its lost ground, but has struggled to regain its footing since then.

WWE’s current difficulties can be traced back to its decision to launch the WWE Network in 2014, a streaming service that offers live and on-demand content for a monthly fee. This was a bold move that initially paid off, but WWE has since faced increased competition from traditional pay-TV providers and new streaming services such as Netflix (NFLX) – Get Report .

The result has been declining subscriber numbers and slower than expected growth for the WWE Network. This has put pressure on WWE’s stock price, which fell sharply in 2015 and 2016. 2017 was a better year for the company, but its stock price is still well below its all-time high.

Conclusion

It’s difficult to say definitively whether WWE is losing money. While the company’s stock price has been on a steady decline over the past year, it’s important to remember that WWE is a publicly traded company and therefore subject to the fluctuations of the stock market. Additionally, WWE’s television ratings have been in decline for several years now, which could be indicative of a loss of interest in the product amongst fans. However, it’s worth noting that WWE still has a large and loyal fanbase, and the company continues to generate significant revenue from its live events, merchandise sales, and other business ventures. So while there are certainly some reasons to be concerned about WWE’s financial stability, it’s too soon to say that the company is in dire straits.