World Wrestling Entertainment WWE saw an extremely profitable weekend with WrestleMania 31 recording the highest attendance in its history on Mar 29. WrestleMania is produced by this leading player in the field of global entertainment.
Moreover, the 31st annual WrestleMania professional wrestling pay-per-view event at Levi's stadium in Santa Clara, CA, turned out to be the highest grossing live event in the history of the extravaganza. We remind investors that WWE had announced a partnership with Facebook FB last week for promoting WrestleMania 31.
WrestleMania 31 grossed $12.6 million with 76,976 people turning up at the stadium to watch the WWE flagship event. Apart from the stadium attendance, its TV viewership was also remarkable.
We note that WWE has had a highly successful 2015 thus far with the stock having gained over 38% year to date. The huge success of the event, the sport’s Super Bowl, should lead to further appreciation in WWE’s stock price. Levi’s stadium had an attendance record of 70,799 previously. Moreover, WrestleMania 29 at MetLife Stadium was the previous highest grosser at $12.3 million.
We note that the extravaganza generates huge traffic to the WWE digital network, a vital source of revenue generation. More than 665,000 new subscribers were added to the network after the event last year. The WWE Network, launched in Feb 2014, provides streaming access to all WWE events, including all 12 live pay-per-view events for $9.99 per month.
In Jan 2015, the professional wrestling organization had reported a record 1 million subscribers to its network. With the subscriber mark exceeding 1 million within a year of its launch, we believe WWE is poised for further record breakers going forward. Moreover, the success of the company’s flagship event is another huge positive.
Zacks Rank
World Wrestling Entertainment carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the industry are RR Media Ltd. RRM and The Walt Disney Company DIS. Both stocks sport a Zacks Rank #2 (Buy).
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