WWE’s latest earnings report drops a few clues to why so many changes are coming

The sky isn’t falling for WWE, but the world’s biggest pro wrestling promotion recognizes some adjustments are needed.

Today (Jul. 25) WWE released their second-quarter earnings report. Some of the numbers look bleak for the company, but they may also explain why fans are hearing about so many creative and cosmetic changes that are set to be implemented in the coming months.

Fans know about declining TV ratings, but merchandise sales, live event attendance, and Network subscribers are also down across the board for WWE.

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Raw and SmackDown are both down in ratings compared to 2018. Thinking back to the summer of 2018, fans were up in arms then about a decline in weekly TV viewers. 2019 has brought no relief in that area.

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Though they have held fewer house show, TV tapings, and pay-per-views events, WWE’s live attendance is still showing a sharp decrease in fans through the gates. Comparing the drop from 2017 to 2019 is even more startling for the company.

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Down from 2018, but up from 2017, WWE Network subscribers may be close to hitting their ceiling at this point in the streaming service’s existence.

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For the second straight quarter, WWE merchandise sales have declined. $23.1 million in revenue is nothing to sneeze at, but it still is a 13% decline in the pace WWE has set for itself.

With all that being said, at the end of the day WWE is still a gigantic and profitable corporation. Net income actually increased slightly to $10.4 million for the second quarter of 2019 and the company’s revenues clocked in at a cool $268.9 million.

Perhaps moves like changing up the WWE Network, adding Paul Heyman and Eric Bischoff backstage, and moving SmackDown to Fox, will help course correct the company moving forward.

Good or bad, do any of WWE’s financial numbers surprise you?