$WWE Don't Bet Against Vince McMahon

7 ก.พ. 2020

WWE has been crushed over the past year with the stock down 55% from its highs. We believe at current levels, WWE presents a turnaround opportunity and one which we see as a bet on CEO Vince McMahon. The man is a known fighter and we believe he can right the ship.

While the stock sold off on a revenue miss and a management shakeup, all news wasn't all bad.

Fourth Quarter 2019 Highlights

Revenues increased 18% to $322.8 million, which was the highest quarterly revenue in WWE history
Operating income increased 87% to $99.8 million
Adjusted OIBDA1 increased 67% to a quarterly record of $107.6 million
Full Year 2019 Highlights

Revenues reached $960.4 million, the highest in the Company’s history
Operating income was $116.5 million
Adjusted OIBDA of $180.0 million represented record performance for the third consecutive year
SmackDown successfully transitioned to FOX Broadcast, where viewership increased by 20% over the prior year fourth quarter,2 and NXT extended its reach, airing live on USA Network for the first time
WWE completed content distribution agreements with BT Sport and ViacomCBS’ Channel 5 in the U.K., Fox Sports in Latin America, PP Sports in China and SuperSport in Africa, providing strong platforms for reaching WWE audiences in these regions
Digital engagement continued to grow with video views up 10% to 34.5 billion and hours consumed up 7% to nearly 1.3 billion across digital and social media platforms
Return of capital to shareholders totaled a record $120.8 million in 2019

As always, trade with caution and use protective stops.

Good luck to all!