"I'm afraid I have some BAD NEWS... we're being investigated by the SEC and hereby are legally enjoined from discussing the matter publicly until further notice."
In that release they say their current tv deal is worth $108 million dollars a year worldwide. So that makes the jump up to near $200 Million seem like a real winner.
But in their 2013 yearly report they say Television rights fee net revenues were $160.9 million in 2013.
So if they made $161 million dollars last year where is this $108 million dollar figure coming from? Rikishi's ass?
Nah, USA network has better penetration that that. This is a number they got from a marketing firm which analysed people who have an "affinity" for the WWE in the US.
The US deal is only for 160 which is basically a 50 million increase or 1/3 over the previous. Talks of double or even 50% are overstated The press release is touting deals not only with the NBC family of networks but also international deals which lead to the total of almost 200 million in rights fees.
Page 3 makes no sense: it says WWE believes it can reach 1M subscribers by year end of 2014. But then it says "if WWE Network achieves an AVERAGE of 2 million to 2.5 million subscribers for 2015"; even assuming the Network is available in every international market by January 1, 2015, how is WWE going from "1M year end 2014" to an average of 2-2.5M for 2015? Wouldn't that require some months to be at least 3M subscribers to balance out the lower rates earlier in the year?
Though it's kind of scary they use the seem copy writers for their did you know's as their financial releases. Much like I'm shocked we've never seen a diva killed on live television, I'm really surprised they've skirted the SEC all these years
Yes, but I assumed there'd be some correlation between the two hypotheticals and that they'd reflect what WWE realistically believed it could reach: WWE could have included a 3rd paragraph with profit/loss for 5-6M subscribers and a 4th for 52M (their households with "affinity") if its just throwing out numbers. Why not use a lower/more reasonable number of 1.5M average for 2015 than 2-2.5M? It was overinflated projections that inflated the stock and now punctured it when not reached.
fair question. I don't write press releases, nor am I that familiar with the standard way that financials and expectations are put out in press release. I just noted that it was two IF situations, regardless of how hopeful they are.
Wwe has won me over with the network. Anythy else they do is really none of my business. I wish they were making more cash off that great service but we're only 2.5 months in. Who knows what it will be doing in 3 years.
Can't wait to see the debut of an evil stock market wrestler on Raw.
ReplyDelete"I'm afraid I have some BAD NEWS... we're being investigated by the SEC and hereby are legally enjoined from discussing the matter publicly until further notice."
ReplyDeleteIRS would be an unpleasant surprise, especially if he entered into the Wyatt/Cena feud.
ReplyDeleteWait.....then again.......
52 million "WWE Homes" in the U.S. alone.
ReplyDeleteHaw!
Jim Cramer on steroids?
ReplyDeleteI'm guessing they are twisting it as people who have USA network=WWE homes?
ReplyDeleteIn that release they say their current tv deal is worth $108 million dollars a year worldwide. So that makes the jump up to near $200 Million seem like a real winner.
ReplyDeleteBut in their 2013 yearly report they say Television rights fee net revenues were $160.9 million in 2013.
So if they made $161 million dollars last year where is this $108 million dollar figure coming from? Rikishi's ass?
Nah, USA network has better penetration that that. This is a number they got from a marketing firm which analysed people who have an "affinity" for the WWE in the US.
ReplyDeleteThe $108M of current deals is just from the US, UK, Thailand (and possibly India; the paragraph above the chart on page 1 isn't clear).
ReplyDeleteThe US deal is only for 160 which is basically a 50 million increase or 1/3 over the previous. Talks of double or even 50% are overstated The press release is touting deals not only with the NBC family of networks but also international deals which lead to the total of almost 200 million in rights fees.
ReplyDeletePage 3 makes no sense: it says WWE believes it can reach 1M subscribers by year end of 2014. But then it says "if WWE Network achieves an AVERAGE of 2 million to 2.5 million subscribers for 2015"; even assuming the Network is available in every international market by January 1, 2015, how is WWE going from "1M year end 2014" to an average of 2-2.5M for 2015? Wouldn't that require some months to be at least 3M subscribers to balance out the lower rates earlier in the year?
ReplyDeleteGet this man on contract, stat. https://www.youtube.com/watch?v=WFoC3TR5rzI
ReplyDeleteThough it's kind of scary they use the seem copy writers for their did you know's as their financial releases. Much like I'm shocked we've never seen a diva killed on live television, I'm really surprised they've skirted the SEC all these years
ReplyDeletetwo seperate paragraphs and statements. Both are IF statements about subscriber rates and what they would mean for loss and profit
ReplyDeleteYeah that seemed like a high number to me as well. I'm curious on what the questionaire was worded like to get "affinity for WWE" from.
ReplyDelete1. Do you like sports?
2. Do you like live events?
etc.
basically its this: WWE invested a LOT in the creation of the network, if it fails, its not going to be good for WWE.
ReplyDeleteThe return of VK WALLSTREET!
ReplyDeleteYes, but I assumed there'd be some correlation between the two hypotheticals and that they'd reflect what WWE realistically believed it could reach: WWE could have included a 3rd paragraph with profit/loss for 5-6M subscribers and a 4th for 52M (their households with "affinity") if its just throwing out numbers. Why not use a lower/more reasonable number of 1.5M average for 2015 than 2-2.5M? It was overinflated projections that inflated the stock and now punctured it when not reached.
ReplyDeletefair question. I don't write press releases, nor am I that familiar with the standard way that financials and expectations are put out in press release. I just noted that it was two IF situations, regardless of how hopeful they are.
ReplyDeleteJoey, do you like movies about gladiators?
ReplyDeleteI don't give a shit. Just give me my play fighting on a cable channel I get, and I'm cool
ReplyDeleteWwe has won me over with the network. Anythy else they do is really none of my business. I wish they were making more cash off that great service but we're only 2.5 months in. Who knows what it will be doing in 3 years.
ReplyDelete