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World Wrestling Entertainment Stock Presentation

By:   •  Case Study  •  1,299 Words  •  November 24, 2009  •  1,369 Views

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Essay title: World Wrestling Entertainment Stock Presentation

World Wrestling Entertainment, INC

Company Overview

World Wrestling Entertainment, INC. is an integrated media and entertainment company primarily engaged in the development, production and marketing of television programming, live events and the licensing and sale of consumer products featuring the WWE brand. WWE has been involved in the sports entertainment business for over twenty years and has developed wrestling into one of the most popular forms of entertainment.

Economic drivers remain down from historical levels. In 2003, WWE created two separate major television programs, Raw and Smackdown!, each with it’s own story lines and talent. This was done to create two touring companies and increase the number of live events and provides the potential to increase to the contribution of the entertainment business. WWE just needs time to produce the intended marketplace results. The company consistently retains the merit of being the number one regularly scheduled program on cable TV with Raw on Monday nights on TNN, and Smackdown! Is the highest rated show on UPN. It airs on Thursdays.

Revenues consist principally of attendance at live events, sale of television advertising time and sponsorships; domestic and international television rights fees, pay-per-view purchases and direct sale of merchandise.

Stock for WWE can be purchased through any brokerage or online investing service. Minimums and fees will vary. Investors Choice Plan enables stockholders to purchase shares and reinvest the cash dividends paid on shares.

For the past nine weeks stock prices for World Wrestling Entertainment, INC have fluctuated between a high of $14.40 at the end of April to a low of $11.52 towards the end of May. For the month of June stock prices fluctuated between $12.37 for a low and $13.45 for a high. Although stock prices are not as stable as the corporation had hoped, it expects operating profits to more than double from the prior year.

WWE anticipates revenue of $375 million, compared with $374 million in the prior year. It expects operating income of $73 million, up from $27 million a year earlier. Net income should range between $44 million and $48 million, or 64 cents to 70 cents a share, compared with a net loss of $19 million, or 28 cents a share, a year earlier.

I believe the corporation and management team of World Wrestling Entertainment, INC has done a lot for its fans. Not only does WWE provide live and televised entertainment, they also get involved in matters that are important in the lives of their fans. I foresee the future outlook of WWE to steadily increase in their fan base as well as become more involved in projects that benefit people in general. Sequentially, this provides the potential to boost profits and stocks.

Related News

May 17 The Republican and the Democratic National Committees will be undertaking voter registration activities at WWE live events in 29 states between now and the end of September. The initiative is part of WWE’s collaborative, non-partisan effort to increase the number of 18 to 30 year olds who cast their vote in the 2004 Presidential election. Smackdown Your Vote! was founded in July 2000 and is a non-partisan approach to getting young people involved in the political process and registered to vote. WWE has teamed up with many non-profit organizations to engage 18 to 30 year olds in the political process. These organizations include League of Women Voters, Youth Vote Coalition, and Harvard Institute of Politics, just to name a few. The program’s goal is to get 20 million young voters to the polls in 2004. In addition to conducting voter registration at WWE live events, Smackdown Your Vote! will visit high schools and colleges across the country conducting voter registration rallies.

May 25 WWE announced its $250,000 RAW Diva search with potential Divas entering the contest at wwe.com. Entrants don’t have to physically wrestle in a WWE ring to win this reality contest. They just need to be beautiful, talented, physically fit, and at least 20 years old from the continental U.S. to have a chance to win. Judges will select 10 finalists who best exhibit the required qualities. The final 10 contestants will be selected on a live TV special on July 15th. Beginning July 19th, the 10 finalists will appear on RAW and perform a special assignment. The WWE fans will then vote to eliminate one contestant each week until only one is left. The new RAW Diva will receive a one year WWE

contract and $250,000.

May 28 The WWE is offering free to all military personnel and veterans, The Great American Bash pay-per-view, set to broadcast

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