Yesterday, WWE released their regular Q3 report to discuss the company’s financials over the last four months. The news was actually largely positive, as WWE reported increased profits over the same quarter last year, including the WWE Network, which seems to have stabilized at roughly 1.2 million subscribers. While that number is a far cry from what may have been anticipated, it is still a large enough subscriber base to make the Network profitable. Traditional Pay Per View buys and live event attendance also saw increases in revenue, making it a generally successful quarter for the company.
In response to the report and an accompanying shareholder conference call, WWE’s stock dropped over 10 percent, from roughly $20 a share to just over seventeen. Analyst suggest the fact that the WWE Network, while profitable, has still not come close to its original lofty expectations, as well as WWE’s over-reliance on promoting their social media footprint (which, while impressive, provides little financial benefit) as reasons for the lowered stock price. WWE cautioned shareholders during the conference call not to expect drastic improvements in the number of Network subscribers going forward (although it’s likely that the upcoming Royal Rumble and WrestleMania events, as well as the Network becoming available in India, will lead to some sort of increase).