WWE’s quarterly results get Wall Street majorly pumped

Investors in WWE were as pumped as one of its superstars Thursday after the wrestling outfit reported a fourth-quarter revenue gain of 17 percent, smashing the 7-percent increase anticipated by analysts.Meanwhile, the number of paid subscribers to the WWE...

WWE’s quarterly results get Wall Street majorly pumped

Investors in WWE were as pumped as one of its superstars Thursday after the wrestling outfit reported a fourth-quarter revenue gain of 17 percent, smashing the 7-percent increase anticipated by analysts.

Meanwhile, the number of paid subscribers to the WWE Network — the over-the-top offering launched three years ago — climbed 14 percent during the fourth quarter to 1.41 million.

Earnings per share of 10 cents, up from a loss of 2 cents in the year-earlier quarter, also beat expectations of 9 cents.

WWE stock rose 8.7 percent on the sales surprise to close at $20.96 per share.

WWE solidified the stock’s gain during a late-morning earnings call by predicting a 25-percent bump in adjusted earnings for 2017 — to a record $100 million.

Fourth-quarter revenue of $194. 9 million was up from $166.2 million in the year-earlier quarter — a gain driven by all four of WWE’s operating divisions.

“There is no one talent that makes this big wheel keep on turning,” WWE chief Vince McMahon said during the call.

Live Events, boosted by the staging of 19 additional events during the quarter, led the way with a 17.3-percent revenue increase.

The Media Division, which includes WWE’s OTT network and television shows “Raw” and “SmackDown,” also posted an increase of 17.3 percent. But its revenue contribution of $125 million accounted for nearly two-thirds of the company’s total.

One of few misses in the quarter was a downturn in ratings for “Raw,” which may have been cannibalized by a move by“SmackDown” last July to a live broadcast that made it more appealing to wrestling fans.

McMahon didn’t seem too worried, however, calling the slip “much like the NFL ratings.”

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