By Jason Powell, ProWrestling.net Editor (@prowrestlingnet)
WWE issued the following press release on Thursday regarding the potential impact of the coronavirus on the company’s financial performance.
STAMFORD, Conn.–(BUSINESS WIRE)– WWE (NYSE: WWE) today communicated perspective regarding the potential impact of COVID-19 on the Company’s financial performance.
WWE has substantial financial resources, both available cash and debt capacity, which currently total more than $0.5 billion, to manage the challenges ahead. The fundamentals of the Company’s business remain strong reflecting the passion of WWE’s fans and the quality of its content. Management continues to believe the Company is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term.
The health and safety of WWE’s fans, performers and employees are the Company’s top priorities and management is monitoring the situation closely domestically and internationally.
The potential impact of COVID-19, and corresponding changes in the way WWE operates, may adversely impact the Company’s business including, but not limited to, its live event ticket sales and the sale of merchandise at those events. It should be noted that the Company may be directed to cancel, postpone or relocate certain upcoming events and the number of these changes is unknown at this time. The Company is currently unable to quantify the potential financial impact of COVID-19, but the financial impact to the Company may be material. Accordingly, the Company is withdrawing its previously announced first quarter and full year 2020 guidance due to the increased uncertainty of the financial impact of COVID-19 to the Company.
Powell’s POV: This was a necessary step by the company to address the potential impact that the pandemic could have on its business. WWE has already had live events and television dates cancelled and more are sure to come.