STAMFORD, Conn. - World Wrestling Entertainment (NYSE:TKO), known as WWE, has reported that its flagship event, WrestleMania XL, surpassed all previous records in the company's history. The event, held at Lincoln Financial Field in Philadelphia, achieved new highs in gate receipts, viewership, merchandise sales, fan engagement, and social media presence.
WrestleMania XL attracted an audience of 145,298 over two nights, representing a 78% increase from the previous record at WrestleMania 39. The event garnered fans from across the United States and 64 countries. WWE also noted a 41% rise in viewership compared to last year's event.
In collaboration with Fanatics, merchandise sales soared over 20% above the prior record, indicating strong consumer demand for WWE products. The event also marked a first with a ring mat sponsorship by PRIME Hydration.
The accompanying WWE World fan event also partnered with Fanatics Events, and set new benchmarks as the highest-grossing and most-attended in WWE history. On the social media front, WrestleMania XL became the most socially viewed event of its kind, with over 660 million views over the two days. The WWE YouTube channel experienced its most-viewed day ever on the second day of WrestleMania XL, with more than 67 million views.
Additional events surrounding WrestleMania XL also broke records, with Friday Night SmackDown and Monday Night Raw at Wells Fargo Center drawing the largest gates in their respective histories. NXT's Stand & Deliver event boasted the highest attendance ever for an NXT event.
WWE is a global media organization and a leader in sports entertainment, producing content year-round for a worldwide audience.
This report is based on a press release statement from WWE, part of TKO Group Holdings.
InvestingPro Insights
World Wrestling Entertainment's (NYSE:TKO) recent success at WrestleMania XL is reflected in some of the company's financial metrics and analyst expectations. According to InvestingPro, WWE has a robust market capitalization of $16.48 billion, a testament to its industry stature and investor confidence. While the company is trading at a high revenue valuation multiple, with a Price/Book ratio in the last twelve months as of Q4 2023 standing at 4.01, the revenue growth figures are impressive. In the same period, WWE saw a revenue growth of 46.91%, and specifically for Q4 2023, the quarterly revenue growth skyrocketed to 125.92%. This indicates that the company's strategies, including major events like WrestleMania, are translating into significant top-line growth.
From an operational perspective, WWE's gross profit margin for the last twelve months as of Q4 2023 was a strong 69.28%, showcasing the company's ability to manage its cost of goods sold effectively. Despite wrestling with profitability challenges over the last twelve months, as indicated by a negative P/E ratio of -225.58, analysts are optimistic, predicting that the company will be profitable this year. This sentiment is bolstered by the InvestingPro Tips, which highlight that net income is expected to grow and sales are anticipated to increase in the current year.
For investors and fans alike, these financial insights complement the excitement around the ring. With analysts revising earnings downwards for the upcoming period, it's a reminder of the volatile nature of the entertainment industry. Yet, the company's moderate level of debt and the strong returns over the last month and three months suggest that WWE is maintaining a solid financial footing.
For more detailed analysis and additional InvestingPro Tips, including the current overbought status of the stock as per the RSI, investors can visit InvestingPro's dedicated WWE page at https://www.investing.com/pro/TKO. There are currently 12 additional tips listed, providing a deeper dive into the company's financial health. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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