The WWE Network has been seen by many as hit and miss from its beginning, however this past week the WWE decided to unveil their official financial numbers from the Network and the Company in general:
WWE revealed that the Network had 1.327 million paid subscribers as of March 31st, nearly double the number of subscribers reported on the day after last year’s WrestleMania.
– During today’s WWE investor call Chairman & CEO Vince McMahon noted that price of the WWE Network could increase during key events, although there are no intimidate plans to do such. McMahon said increasing the price for marquee events like SummerSlam, Royal Rumble or WrestleMania is an option, but said they have no plans to do it right now. The goal is to keep subscribers engaged year-round. He emphasized their ability to adapt quickly should such a move seem prudent
– WWE officials are interested in running more live specials on the WWE Network which would air on Tuesday night’s much like King of The Ring did this past Tuesday. The events would take place prior to that week’s SmackDown tapings.
WWE announced during their first quarter earnings release today that the WWE Network will also be free for the month of May for new subscribers to the on-demand service.
“Based on the successful execution of the network’s free trial offerings, the Company will continue its sampling program. All new subscribers who register for the network in May will receive the network for free in that month, including WWE Payback live on Sunday, May 17.”
WWE® Reports Record Quarterly Revenue
First-Quarter 2015 Highlights
* Revenues increased 40% to $176.2 million, the highest quarterly revenue in WWE history
* OIBDA of $21.0 million increased $28.2 million from the prior year quarter
* Financial results surpassed the Company’s public guidance
* WWE Network reached 1.3 million total subscribers, representing a 99% increase from the prior year WrestleMania (which was held on April 6, 2014)
STAMFORD, Conn., April 30, 2015 – WWE (NYSE:WWE) today announced financial results for its first quarter ended March 31, 2015. For the quarter, the Company reported Net income of $9.8 million, or $0.13 per share, compared to a Net loss of $8.0 million, or $0.11 per share, in the first quarter last year.
“During the quarter, we generated record quarterly revenue and strong earnings growth, reflecting ourstrategy to realize greater value from our content acrossmultiple platforms,” said WWE Chairman & CEO Vince McMahon. “We believe that we are on a path to significant growth as we continue to expand WWE Network and innovate faster than ever.”
“Our strong earnings growth was driven primarily by the escalation of our television rights fees and the expansion of WWE Network subscribers. For the quarter, our OIBDA surpassed our public guidance,” added George Barrios, Chief Strategy & Financial Officer. “WWE Network subscribers watched an estimated average of 53 hours of content per household over the quarter putting it among Netflix and the top cable and broadcast networks in terms of viewer hours per household. Additionally, WrestleMania 31 was viewed in more homes globally than ever before. Our ability to engage our global fan base reinforces our view that successful execution of our WWE Networkstrategy can generate meaningful economic returns.”