On Thursday, WWE released their earnings results for Q1 of 2019. This included a press release on their website and an earnings call with investors.
One of the most interesting parts of the entire thing was WWE providing an explanation for why their television ratings have dropped and why live event numbers have been down.
Here is WWE’s explanation for the drop:
During the fourth quarter 2018 earnings call, WWE management discussed the absence of several talent and their belief that these absences had a negative impact on the Company’s engagement metrics. Management believes that these absences continued to impact engagement in the first quarter 2019 as domestic TV ratings for Raw and SmackDown declined approximately 14% and 13%, respectively, and average attendance at the Company’s live events in North America declined 11%. WWE Network average paid subscribers increased 2% and digital video consumption increased 23%.
Looking to the future, management believes the Company’s engagement metrics will improve with the return of its talent, the emergence of new storylines and new Superstars, and as the Company launches a new season of WWE following a successful WrestleMania. Moreover, management remains excited about the debut of SmackDown Live on Fox in October. The debut will mark the first time WWE will be available live 52 weeks a year on a premier broadcast platform. In addition to absolute performance, management believes relative performance is critically important as it illuminates the value of WWE within the pay TV ecosystem. In the first quarter, when excluding NASCAR’s premier event, The Daytona 500, WWE delivered greater average viewership than any professional sports league other than the NFL.
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In other news, check out the latest update on Dean Ambrose.