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World Wrestling Entertainment 4th Quarter 2021 Highlights and some of my thoughts
$WWE might not be the name you think of when you think of success BUT Mr McMahon and the team has been able to do the impossible and that keep "Entertainment Wrestling" (lets not call it fake) relevant and fun and they got numbers to prove it!
For the Q4:
- Revenue increased 30% to $310.3 million
- Operating income increased 131% to $83.6 million
- Adjusted OIBDA1 increased 90% to $97.2 million
- Returning capital to shareholders via consistent dividends and share repurchases
For the Full Year 2021:
- Increased revenue to over 1$ billion (current market cap of $WWE is around $3.5 billion)
- Gross Margins almost at 50%
- Launched WWE Network content on Peacock
- Launched NFTs, Trading Cards, & Lottery Tickets
- and much more
So if this is all so great, why is this NOT my the only holding and the answer is... I'm really not sure how much longer they will be able to "squeeze the juice" out of it.
They have competition from AEW (All Elite Wrestling) although more towards NXT then WWE.
The names are just pretty much reruns of old stuff with new graphics.
No (not many) new great Superstars to keep fans engaged (they have brought out many old Superstars, which well old...don't get me wrong they are amazing Undertaker, John Cena, Rey Mysterio etc, but they are old blood not new and don't have much in their gas tank)
The end take:
For now I'm holding my $WWE shares, but with 4-5 of companies in my portfolio dropping 20%+ (with in last few days) and me not having much "cash" on the sidelines, I might reallocate from WWE to others names depending how things will be unfolding in the comping weeks/months.
WWE is currently around 7% of my portfolio...
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