World Wrestling (WWE) Gains On Major Partnership In China

World Wrestling Entertainment Inc. (NYSE:WWE) set the Mercedes-Benz Arena in Shanghai buzzing with back-to-back positive announcements for WWE lovers in China. The declarations, which were made in the presence of WWE Superstar John Cena, drew cheers from investors with the stock gaining 4.2% on Jun 16, 2016.

WWE has signed a multi-year agreement with China’s digital streaming company, PPTV. Per the agreement, the company will air its leading shows – Raw and SmackDown – in Mandarin. Beginning Jun 28, WWE fans in China can stream all three hours of Raw as well as two hours of SmackDown on demand entirely on PPTV and Sports PPTV.

The company will also hold the live events in China for the first time in more than three years. The live event is scheduled for Sep 10, 2016 at 7 pm. Tickets for the live event will be available from Jun 18, 2016, 12 pm. onward. WWE superstars Roman Reigns, Charlotte, John Cena, Seth Rollins and Sasha Banks will be present at the live events.

Apart from aforementioned, the company has signed a developmental contract with wrestler, Bin Wang. This will give Wang the chance to get trained and become the first ever Chinese WWE superstar.

We believe that the company’s effort to globalize its business will certainly drive its financial performance in the near future.

WORLD WRESTLING Price

WORLD WRESTLING Price | WORLD WRESTLING Quote

In the long haul, the company will continue to benefit from its content distribution agreement. During 2014, WWE confirmed its television distribution agreements in the U.S., India, the U.K., Thailand, Canada, the UAE and Mexico. Management expects contractual increase of television rights fees as well as the acquisition and retention of WWE Network subscribers to be the primary growth driver in 2016 and beyond.

WWE Network’s total subscriber base jumped 10.7% to 1.469 million year over year during the first quarter of 2016. The number of average paid subscribers surged 39% to above 1.29 million from the first quarter of 2015. WWE Network is also available in the Indian Subcontinent, Germany, Austria, Switzerland and Japan. Moreover, in order to boost WWE Network’s revenues, the company has been implementing strategies like the development of fresh content, execution of customer acquisition and retention programs, increase in distribution platform, introduction of new features and foraying into new locations.

Zacks Rank & Stocks to Consider

WWE currently which share space with Live Nation Entertainment, Inc. (NYSE:LYV) has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space include Cablevision Systems Corporation (NYSE:CVC) and MSG Networks Inc. (NYSE:MSGN) . Cablevision Systems sports a Zacks Rank #1 (Strong Buy) while MSG Networks holds a Zacks Rank #2 (Buy).