Catching Its Second Wind: WWE Rebounding From Turbulent Year
The WWE hosting all three U.S. presidential candidates on its "Monday Night Raw" program last week is part of "a business turnaround" for the company, according to R.M. Schneiderman of the N.Y. TIMES. It came a year after WWE's reputation "seemed to be in tatters, its ratings and share price staggering after a suicide-murder involving" Chris Benoit. WWE’s “quick recovery is the result of many steps the company has taken, including expanding overseas and online, where its digital revenues grew 47[%] last year in part because of a mobile content deal with AT&T Mobile.” WWE was “also able to react quickly, turning the issue of steroids to its advantage.” N.Y.-based research firm Natixis Bleichroeder analyst Alan Gould said, “The Benoit thing was a tragedy. But I don’t see that changing the fan base or the economics or the long-term value of this franchise.” WWE in December signed a contract keeping “Raw” on USA Network through 2010 and sponsors like Unilever, Bayer, Procter & Gamble, Electronic Arts, Warner, Paramount, Universal, Sega and the Army National Guard have “remained committed” to the sport despite last year’s events. WWE’s revenues have increased by about 21% to $485.7M in FY '07. During the same period, profits increased by roughly 7%, or $3.5M, to $50M. WWE is now “awash in cash” and is investing globally; it “currently shows programs in 23 languages in more than 130 countries, and is now concentrating on expansion in Latin America, China, India, Australia and Japan.” However, it “still faces considerable challenges at home,” as ratings for “Raw” are down “slightly year over year and it lost viewers in the 18-to-34 age group.” Also, analysts said that WWE “lacks the charismatic and marketable stars it once had.” But UFC President Dana White said, “People have been trying to count the WWE out for years. They’re a powerhouse” (N.Y. TIMES, 4/28).
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