World Wrestling Entertainment (WWE) Tops Q4 EPS by 4c

World Wrestling Entertainment (NYSE: WWE) reported Q4 EPS of $0.04, $0.04 better than the analyst estimate of $0.00. Revenue for the quarter came in at $166.2 million versus the consensus estimate of $161.27 million.

WWE Network had 1.22 million ending paid subscribers, representing a 49% increase from the fourth quarter 2014; WWE Network hit an all-time high of 1.24 million average paid subscribers for the quarter

Q1 2016 Business Outlook

For the first quarter 2016, the Company projects average paid subscribers of 1,280,000 (+/- 2%), representing an approximate year-over-year increase of 38%.

As a reminder, WrestleMania will occur on April 3 within the second quarter of 2016 as compared to last year’s event, which occurred within the first quarter. Given that timing, management anticipates the most significant subscriber additions within the quarter will occur towards the latter part of March. As such, these additions are not expected to have a significant impact on the Company’s first quarter subscriber average or the Company’s first quarter financial results.

The Company also estimates first quarter 2016 Adjusted OIBDA of approximately $15 million to $19 million.4 The range of projected first quarter results reflects a year-over-year decline primarily due to the timing of WrestleMania and related event ticket sales - as last year’s event grossed approximately $15 million - and an increase in accrued management incentive compensation.

Although the Company is not providing an estimate of first quarter ending subscribers with this release, the Company plans to communicate an update on network subscriber levels on April 4, 2016 the day after WrestleMania.

For earnings history and earnings-related data on World Wrestling Entertainment (WWE) click here.

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