World Wrestling Entertainment Inc.WWE came up with fourth-quarter 2015 adjusted earnings of 4 cents a share. The bottom line fared far better than the prior-year quarter figure and the Zacks Consensus Estimate of a loss of 1 cent.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2016 has remained unchanged over the last 60 days.
Revenues: WWE generated revenue of $166.2 million that surpassed the Zacks Consensus Estimate of $148 million and also increased 18% year over year.
Results were primarily driven by increase in WWE Network subscriber base and increase in international revenue. WWE Network paid subscribers increased 49% to 1.22 million from the year-ago quarter. For first-quarter 2016, WWE anticipates average paid subscribers of 1,280,000 (+/- 2%), reflecting year-over-year growth of approximately 38%.
Management is strengthening and expanding the WWE Network which includes creation of new content, implementation of programs which will have higher customer attraction and retention power, introduction of new features, expansion of distribution platforms and entering into new regions.
Zacks Rank: Currently, World Wrestling Entertainment carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement.
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