WWE Pops And Drops Following Guidance, 1.8 Million Network Subscribers

Shares of World Wrestling Entertainment, Inc. WWE popped and dropped following its preliminary results for the quarter ended March 31, 2016.

In a press release, the company said total domestic subscribers increased 24 percent to 1.39 million; total international subscribers climbed 126 percent to 434,000. Domestic and international paid subscribers reached 1.11 million and 345,000, respectively as of April 4.

WWE said its digital subscription service, WWE Network, reached a 1.82 million total subscribers following Sunday's WrestleMania event. This is a 39 percent increase from March 30, 2015, the day after WrestleMania last year.

WWE Network attracted an average of about 1.29 million paid subscribers in the first quarter 2016, an increase of 39 percent increase from the first quarter 2015 average.

Related Link: Will Investors Cheer WWE Network Subscribers? Here's How It's Traded Historically Following WrestleMania

The company expects to exceed the high end of the range of its estimated first quarter 2016 adjusted OIBDA (operating income before depreciation and amortization) of approximately $19 million reflecting higher performance expectations across its businesses.

Looking ahead, WWE sees average paid subscribers for the second quarter 2016 in range of 1.48 million – 1.55 million, representing an increase of approximately 22 – 27 percent from last year.

"WWE management continues to believe that if the average paid subscribers to WWE Network increases at a rate between 20% to 25% in 2016, 2016 Adjusted OIBDA could be in a range of approximately $70 million to $85 million," the company said in a release.

Shares of WWE were down 5.43 percent at $16.37. They surged 9 percent before falling as much as 6.5 percent.