WWE has issued a statement after the stock market closed today saying that they are lowering their financial outlook for this year. The press release stated that they expected OIBDA results to range from $40 million to $50 million and that the revision is due mostly to “several recent developments that caused an approximate 5% reduction in second half revenue expectations” as well as the company’s “high operating leverage.”
The estimate change is called a “relatively moderate change in our second half revenue expectations and our continued investment in the WWE brand and our content.” by CFO George Barrios, Chief Financial Officer, who added, “Given the rising value of content in the market place, we believe these investments will maximize WWE’s future earnings as we renegotiate our four largest television distribution agreements and potentially launch a WWE Network.”
The company’s original estimate was $56.9 million to $69.5 million.
To check out the full press release, click here.
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