World Wrestling Leisure (NYSE:WWE) is having a great 12 months, however some essential questions got here up in its current earnings report.
On this video clip from “Beat & Elevate,” recorded on Nov. 5, Idiot.com contributors Brian Withers and Toby Bordelon focus on the highlights from the wrestling specialist’s announcement.
Brian Withers: I’ll flip it over to Toby, who’s going to cowl World Wrestling Leisure, which solely has the second finest emblem right this moment after Datadog. [laughs]
Toby Bordelon: Yeah, it is free emblem, is not it? Now, I do not know should you observe wrestling, Brian, should you’re a fan of wrestling leisure.
Withers: I do not.
Bordelon: You do not. I am not an enormous fan, however I do bear in mind again within the day, I bear in mind following this firm earlier than it had this little trademark dispute with the World Wildlife Federation, it was often called a WWF approach again within the day. The times of Undertaker and Kane, even Hulk Hogan. I imply, they arrive a good distance since then. Good quarter for them. I feel income up 15 %. Borderline. I imply, meet, miss, is determined by your perspective. They beat earnings per share.
They did increase their outlook slightly bit. They mentioned they anticipate [inaudible 03:17:39] % larger OIBDA. I do not know the way to pronounce that. For those who’re taking a look at that and say what’s that, good query. It is perhaps the primary time I’ve ever truly seen that exact acronym, working earnings earlier than depreciation and amortization. It is a kind of non-GAAP measures. In the event that they need to give it to us, superb, we’ll decide them on that. I do like working earnings, so perhaps it is a legit metric there to have a look at.
However that income improve was actually they mentioned pushed by larger ticket gross sales, the first driver inside their merchandise. As a result of what’s occurred is they’re again on tour. Stay touring is again. They return to occasions towards in July. They’re seeing ticket demand outpace their expectations. North American occasions, they mentioned, attracted the very best quarterly attendance in over a decade. The folks need their WWE, Brian.
That is what the folks need. Apparently, that is what they’re delivering. SummerSlam in Vegas was a record-breaking crowd, with sponsorship and merchandise gross sales 155% larger than SummerSlam 2019.
So pre-pandemic. Fairly good. It appears like they’re coming again fairly properly. Digital video views are additionally up 39%. Hours consumed are at a file, 411 million, up 20%. That is attention-grabbing since you would assume on this quarter, popping out of the pandemic, at residence video streaming may be slightly bit down. However for them, they’re doing fairly properly on that. I like with what I see.
They did announce a brand new CFO. That was slightly random and sudden. I do not fairly know what to make of that. They have not given any motive for the departure but, so I am probably not positive what is going on on there.
The CFO, Kristina Salen, she left after 15 months, so she wasn’t there very lengthy. The gents changing her, Mr. Frank Riddick III is a board member, so he is been with the corporate since 2008. So he is aware of what is going on on. It is not just a few random new rent.
However slightly little bit of a priority there. They did additionally do loads of share repurchasing and also you marvel why. You’ll assume for an organization like this popping out of a pandemic, there’s room for investments, not less than initially. However right here we go, we’re getting loads of share repurchases.
However not a nasty quarter, shares down slightly bit. However I like what I see and I like that they appear to be doing very properly relative to their pre-pandemic metrics and hope we get all the things again up and working once more fairly quickly.
Withers: Yeah, it is actually attention-grabbing. You say they’re seeing file crowds and so they could also be on monitor to beat their OIBDA subsequent quarter. We’ll have you ever again to report on their made-up metric.
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