World Wrestling Entertainment, Inc. (WWE) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $8 million, or $ 0.10 a share in the quarter, against a net loss of $1.20 million, or $0.02 a share in the last year period.
Revenue during the quarter grew 17.27 percent to $194.90 million from $166.20 million in the previous year period. Gross margin for the quarter expanded 134 basis points over the previous year period to 39.97 percent. Operating margin for the quarter period stood at positive 7.13 percent as compared to a negative 0.90 percent for the previous year period.
Operating income for the quarter was $13.90 million, compared with an operating loss of $1.50 million in the previous year period.
"During the past year, we continued to successfully execute our content strategy, which resulted in significant operational achievements and generated record revenue. We grew WWE Network to an average of more than 1.5 million subscribers, attracted record attendance of 101,763 fans at WrestleMania, and strengthened the global reach of our television programs, completing distribution deals in in China, Australia, Germany and Spain, among other countries," said WWE chairman & chief executive officer Vince McMahon. "The increased engagement with our brands across multiple platforms provides a foundation for achieving our 2017 and long-term financial objectives."
For financial year 2017, World Wrestling Entertainment, Inc. projects operating income to be $70 million.
For the first-quarter, World Wrestling Entertainment, Inc. forecasts operating income to be in the range of $16 million to $20 million.
Operating cash flow improves
World Wrestling Entertainment, Inc. has generated cash of $56.60 million from operating activities during the year, up 14.34 percent or $7.10 million, when compared with the last year.
The company has spent $24.10 million cash to meet investing activities during the year as against cash outgo of $18.70 million in the last year.
Cash flow from financing activities was $141.50 million for the year as against cash outgo of $40 million in the last year period.
Cash and cash equivalents stood at $212 million as on Dec. 31, 2016, up 457.89 percent or $174 million from $38 million on Dec. 31, 2015.
Working capital increases sharply
World Wrestling Entertainment, Inc. has recorded an increase in the working capital over the last year. It stood at $216.20 million as at Dec. 31, 2016, up 348.87 percent or $168.04 million from $48.17 million on Dec. 31, 2015. Current ratio was at 2.62 as on Dec. 31, 2016, up from 1.37 on Dec. 31, 2015.
Days sales outstanding went down to 13 days for the quarter compared with 16 days for the same period last year.
Days inventory outstanding was almost stable at 3 days for the quarter, when compared with the last year period.
Debt increases substantially
World Wrestling Entertainment, Inc. has witnessed an increase in total debt over the last one year. It stood at $202.70 million as on Dec. 31, 2016, up 842.79 percent or $181.20 million from $21.50 million on Dec. 31, 2015. Total debt was 33.73 percent of total assets as on Dec. 31, 2016, compared with 5.25 percent on Dec. 31, 2015. Debt to equity ratio was at 0.85 as on Dec. 31, 2016, up from 0.10 as on Dec. 31, 2015.
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