The provider of wrestling fights, World Wrestling Entertainment, is recovering from the pandemic
The organizer of wrestling fights and the copyright holder of broadcasts on them, World Wrestling Entertainment Inc. (WWE), is gradually restoring activity after several quarters of calm amid the coronavirus pandemic. This year, one of the biggest events returns in full. In addition, they expect that the proceeds from the sale of broadcast rights will increase.
The main positive news of World Wrestling Entertainment is the return of life events. One of the largest events of World Wrestling Entertainment — WrestleMania – will be in Saudi Arabia next weekend. This event is one of the most popular in terms of attendance, viewing and attracting sponsors. Traditionally, a company can earn about $50 million at this event, and they held twice it a year.
Because of COVID-19, events in Saudi Arabia in 2020 and in 2021 only once a year, the company lost about $100 million. Now, World Wrestling Entertainment plans to return to the usual mode of WrestleMania under the contract until 2027. Before the pandemic, World Wrestling Entertainment held over 300 shows a year, with a total revenue of approximately $125 million.
Now, in 2022, when the restrictions related to COVID will, the management expects the return of all its life events. In addition, World Wrestling Entertainment plans to return the proceeds from the provision of broadcast rights.
The company’s media division generated revenue of $936 million from licensing deals with Raw, SmackDown, and the WWE Network. These deals include separate multi-year contracts with leading media players, such as Comcast, Disney, and Fox. WWE’s current deals also provide for an annual contractual increase in broadcast rights fees. In the long term, sports licensing deals grow. For example, World Wrestling Entertainment’s revenues from media cooperation have grown by 87% over the past five years.
World Wrestling Entertainment pays dividends and conducts share repurchase programs. It currently pays a quarterly dividend of $0.12 per share, which provides a yield of about 0.75%. In total, in 2021, the company returned $202 million to shareholders, or 4% of its current market capitalization. At this stage, World Wrestling Entertainment continues to recover from weak months during the pandemic, but they needed time to ensure a steady return of viewers.
