WWE's Body-Slammin' Splash
By Steven Mallas
Thu Apr 28, 4:20 PM ET
I wrote about World Wrestling Entertainment's (NYSE: WWE - News) Wrestlemania 21 event shortly before it took place, attempting to get a bit of perspective on its potential. Well, the pay-per-view is now in the history books, and we've got some early results to look at.
Wrestlemania 21 has achieved a preliminary estimate of more than 940,000 pay-per-view buys, a 14% increase over last year's Wrestlemania 20. The numbers aren't final, though. WWE expects the final tally to surpass 1 million buys when all of the pay-per-view data becomes available (within a year). I believe we can call the latest Wrestlemania a success.
The stock didn't react like a rocket on the news, however. It's not surprising, really, considering that WWE needs to get itself on a growth track again. The market is certainly going to be skeptical of an investing philosophy that goes something like, "Well, since Wrestlemania 21 is up over Wrestlemania 20, we need to get on board." Nope, not that easy.
Nevertheless, this is a good showing for the event. In my opinion, it might justify a positive outlook on the company's prospects for the next couple of years, but there's a catch. WWE Chairman Vince McMahon must really seize the opportunity to stretch this success and reorient the company's creative center to its best possible path.
I'm sure the powers that be (wasn't that a storyline once?) in Stamford have analyzed every nuance of the show's design to see exactly what was responsible for the growth in the year-over-year results (to the extent that something like that can be seen, anyway). Was it the hall-of-fame presentation that preceded the program the night before or the appearance of Steve Austin on Piper's Pit?
Stockholders will certainly be hoping that the company will be able to bottle whatever "it" was and spread the magic to the rest of the monthly events. If Vince finds he cannot bottle anything from Wrestlemania 21, stockholders might have to remain patient and be content with a strategy of dividend reinvestment until the capital price catches up with the spectacle within the squared circle.
Enter the ring (if you dare):
WWE: Investing Mania
Wrestling With the Future
WWE Goes Back to the USA
Still in the ring? Can you handle the WWE discussion board?
Fool contributor Steven Mallas owns none of the companies mentioned. The Fool has a disclosure policy.
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WWE's WrestleMania 21 A Pay-Per-View Blockbuster
Monday April 25, 4:16 pm ET
STAMFORD, Conn.--(BUSINESS WIRE)--April 25, 2005--World Wrestling Entertainment, Inc. (NYSE: WWE - News) said its preliminary estimate of Pay-Per-View buys for WrestleMania® 21 is more than 940,000, exceeding same-time Pay-Per-View buys for last year's WrestleMania XX by more than 14 percent. Final Pay-Per-View tallies may exceed one million buys for the second year in a row once all information is provided to WWE® by distributors and affiliates over the next several months.
WrestleMania 21 was seen by fans in more than 90 countries, and was broadcast to U.S. troops around the world. More than 20,000 fans from 48 states and 14 countries converged on the sold-out STAPLES Center in Los Angeles to witness all the action at WWE's annual pop culture extravaganza, setting attendance and ticket sales records.
"Thank you to all our great fans around the world who have again made WrestleMania the premiere event in the Pay-Per-View industry," said Kurt Schneider, EVP, Marketing. "We will maintain the incredible momentum we have built over the past 21 years by producing exceptional Pay-Per-Views month in and month out. This Sunday's Backlash® Pay-Per-View, which showcases the immortal Hulk Hogan(TM)'s return to the ring, further cements WWE's place at the forefront of global pop culture."
Backlash is the first of 16 Pay-Per-Views that will be offered by World Wrestling Entertainment in its new fiscal year. Backlash will take place this Sunday from the Verizon Wireless Arena in New Hampshire. In addition to Hulk Hogan's tag team pairing with Shawn Michaels(TM), the main event pits current World Heavyweight Champion Batista(TM) against Triple H®, the 10-time world champion, who is driven to recapture the title he lost at WrestleMania 21.
World Wrestling Entertainment, Inc. (NYSE: WWE - News) is an integrated media and entertainment company headquartered in Stamford, Conn., with offices in New York City, Los Angeles, Toronto and London. Additional information on the company can be found at wwe.com and corporate.wwe.com.
Trademarks: The names of all World Wrestling Entertainment televised and live programming, talent names, images, likenesses, slogans and wrestling moves and all World Wrestling Entertainment logos are trademarks which are the exclusive property of World Wrestling Entertainment, Inc. All other trademarks are the property of their respective owners.
Forward-Looking Statements: This news release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for live events, broadcast television, cable television, pay-per-view, Internet, entertainment, professional sports, and licensed merchandise; acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to litigation; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; risks relating to maintaining and renewing key agreement, including television distribution agreement; and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated. In addition to these risks and uncertainties, our dividend is based on a number of factors, including our liquidity and historical and projected cash flow, strategic plan, our financial results and condition, contractual and legal restrictions on the payment of dividends and such other factors as our board of directors may consider relevant.
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Contact:
World Wrestling Entertainment, Inc.
Media:
Gary Davis, VP, Corporate Communications
203-353-5066
or
Investor:
Michele Goldstein, VP, Planning and Investor Relations
203-352-8642
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Source: World Wrestling Entertainment, Inc.
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