World Wrestling Entertainment (WWE) has reported a fall in ticket sales as one of the main reasons behind not reaching revenue expectations.
In its financial results for the fourth quarter 2019, WWE reported record revenues of $322.8m, up 18 per cent from the prior year as increased revenue in the media segment, primarily driven by the monetisation of core content, was partially offset by lower revenue from the company’s live events segment.
The 56 fewer events and lower average attendance, a decline in WWE Network subscription revenue, the absence of Mixed Match Challenge on Facebook Watch, as well as lower consumer product sales, particularly the WWE 2K20 video game, were behind the WWE missing its projections.
WWE Network’s average paid subscribers dropped 10 per cent to 1.42m, slightly lower than the company’s 1.43m projection.
WWE reported a three per cent increase in revenues in its 2019 full year financial report, with a record income of $960.4m.
“During the fourth quarter, we expanded the reach of WWE’s live programming and further engaged with diverse audiences across platforms and formats,” said Vince McMahon, WWE chairman and chief executive. “We believe the value of live sports will continue to increase, particularly in today’s evolving media landscape, and we are well positioned to take advantage of this trend to maximise the value of our content.”
Frank Riddick, interim chief financial officer, added: “For the year, we achieved record revenue and Adjusted OIBDA. However, with the delay in completing a Middle East distribution agreement as well as lower business performance than anticipated, our results were at the low-end of guidance.”