WWE Jumps on Quarterly Results Topping Estimates, Job CutsSonali Basak
World Wrestling Entertainment Inc. jumped after posting second-quarter results that beat analysts’ estimates and saying it would cut jobs.
The shares rose 3.2 percent to $12.48 at the close in New York. WWE has slumped 25 percent this year amid growth concerns for its online service. The company added 33,000 subscribers in the quarter for a total of 700,000. In May, WWE reiterated its target to reach 1 million users by the end of this year.
Adjusted loss per share in the quarter was 18 cents, the Stamford, Connecticut-based company said in a statement today. Analysts projected a loss of 21 cents, the average of estimates compiled by Bloomberg. Sales rose 2.6 percent to $156.3 million, beating the $155.5 million estimated by analysts.
The company said it would cut 7 percent of its workforce, or about 53 jobs based on the 762 employees WWE said it had as of February. The move helps WWE improve its forecast for 2015 operating income before depreciation and amortization by $30 million.