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The $729 million entertainment business of the McMahon’s known as WWE has been quite strong in terms of global development, but quite disappointing in terms trading numbers. In a recent interview, the Chief Brand Officer of WWE, Stephanie McMahon, had stated some of the updates on its planned global expansion plus its current progress through the years.

Company Performance

In terms of the global expansion, almost 30% of that revenue came from the international sector of the entertainment business, which indicates that the expansion is indeed working, according to McMahon.

In 2010, about 30% of the business was direct-to-consumer which now jumped to 50%, which proves that the direct-to-consumer strategy is planned and executed well.  Also in the same year, 6% of the entertainment business was digital, which at now is beyond 30%.

 “So again, it’s our businesses itself and the people driving it.” McMahon added. “They are laser-focused on our different strategies for growth, whether that be content and our tiered ecosystem, or sales and sponsorship.”

“We have over 780 million social media followers, which mean their engagement with us continues outside of the ring. From a business standpoint we’re able to utilize the data analytics that we get from the WWE Network, from social media, from live events and even from merchandise sales to help influence the direction of our content and super-serve our audience.”

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As far as challenges are concerned, McMahon thinks that WWE can excel further with better technology. Again, the company is social media driven and WWE uses the social media and other online media to reach out to their target audience and build a community amongst them. McMahon also revealed that right now, they still lack partnerships and with its current ones, they are pushing their best to at least get the result that the company desires. All of these all fall under the aim of opening more opportunities for the company and with its publics. “The more we provide them the hungrier they get.“ McMahon said.

As for competition goes, Stephanie McMahon said that WWE is in the perfect position so far. She cites that with their media partnerships such MGM, WWE provides not only just a wrestling show but a variety of materials such as the Total Divas and Fighting with My Family, the story of Paige’s life.

Earnings Report

This May, WWE announced a mixed result for first-quarter 2017. The company stated attuned earnings of 8 cents, missing to meet analyst’s expectations of 11 cents. WWE also dropped 55.6% year over year.

However, WWE’s revenues projected a $188.4 million result beating expectations of $182 million and soared 10% year over year. More so, global revenue increased 3% sustained upsurge in television distribution agreement rights fees chiefly in Asia Pacific (APAC) region.

The amount of average paid subscribers improved 16% in first-quarter 2017 to 1.49 million. Furthermore, WWE Network also added networks in Indian Subcontinent, Germany, Malaysia, Austria, Switzerland and Japan.

Revenues in North America developed 12% more to $146.2 million, whereas revenues from Europe/Middle East/Africa (EMEA) dropped 4% to $26.6 million. The Asia Pacific (APAC) and Latin America produced revenues of $13 million and $2.6 million, which epitomize an improvement of 12% and 37%, correspondingly.

As mentioned in Stephanie McMahon’s interview, The WWE Management is reinforcing and expanding its network through the conception of fresh content alongside the application of programs which will have greater audience desirability and maintenance supremacy. With the new features, expansion of dissemination platforms and venturing into different expanses will help the planned forces.

Chart Performance

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WWE seemed to have continued its bearish performance in its recent trades. The latest candle opened at 19.70 and closed trades at 19.50. The candle had no high but recorded a low of 19.35.

As for the other indicators, WWE’s RSI level is close to being marked as oversold as it last recorded at 30.88. For Coppock Curve, the entertainment stock traded around the negative region, specifically at -13.08 – a strong sell for stock.

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