WWE warns of ‘considerable uncertainty’ about its strategy

Actions of WWE (WWE) It fell more than 10% on Thursday morning after the company reported “considerable uncertainty” about its strategy and outlook. The stock has already plummeted around 33% in 2020.

The company said Thursday it was considering “alternative strategic options for the WWE Network,” its streaming service that charges users a monthly subscription fee of $ 9.99 to watch special live events like “Royal Rumble” and “Wrestlemania” .

WWE reported fourth-quarter earnings of 78 cents per share, which exceeded Wall Street forecasts. Revenue reached $ 323 million, almost 20% more than a year ago, but lower than analyst forecasts of $ 332 million.

But the company has been shaken in recent months by concerns about its international growth, as it seeks to sign new television contracts in many foreign markets.

Concerns about the decline of the audience in the United States have also affected the actions, in light of the low ratings of the flagship programs such as “Raw” and “NXB” that are transmitted Comcast (CMCSA)owned by the NBCUniversal USA and “SmackDown” cable network in Fox (FOXA).
WWE said last month that its two co-chairs resigned, but WWE president and CEO Vince McMahon is still confident that the company would change things.

“We believe that the value of live sports will continue to increase, particularly in the current landscape of the evolving media, and we are well positioned to take advantage of this trend to maximize the value of our content,” McMahon said in a statement.

Wall Street is not so sure. Several analysts have reduced their rating and price targets for WWE in recent months.

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