Local public transportation utility NJ Transit seeks to cash in on the expected mammoth turnout with a special transit service to various WrestleMania events. Besides the April 7 championship card, the week-long WWE hoopla ranges from an art exhibit displaying the works of WWE divas, superstars, and legends to an interactive fan event, WrestleMania Axxess.
Digital platforms as portable growth sources
Given its huge U.S. and global fan base, WWE is also seeking future growth by broadening the portability of its product brands. Toward this pursuit, the company is banking on its strong online presence to use more gamification, or gaming techniques, with its content and further develop its digital products, such as mobile apps, where growth momentum in the estimated $67 billion video game industry has shifted.
There’s wisdom in the pursuit of this path. The World Wrestling Entertainment, Inc. (NYSE:WWE) pro wrestling video game series, now playable in various consoles and mobile devices, has shown market durability after 14 editions. One of its most successful iterations was the 2009 edition, which sold 47 million copies and ranks among the best-selling video game franchises.
Strength in new tag teammate
What is also good to know is that the 2K Sports unit of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has acquired the publishing rights for the WWE game series from the former publisher, THQ, which went bankrupt.
World Wrestling Entertainment, Inc. (NYSE:WWE) has a much stronger tag teammate in Take-Two, whose properties are regulars on the hot list of video gamers, with the company spending bundles in game development and advertising.
Take-Two spent some $200 million, for instance, for its much-anticipated “BioShock Infinite” offering. Moreover, Take-Two is on solid financial footing upon reporting $416 million in revenue and $0.59 EPS in the December 2012 quarter, results that were ahead of most analysts’ estimates.
In wrapping things up, however, don’t expect World Wrestling Entertainment to deliver results as robust as Take-Two’s anytime soon. The company, for one, is still trying to earn more from its TV programming, options that include introducing an exclusive broadcast network, which will monopolize resources in the interim. At best, World Wrestling Entertainment is a long-term play with a favorable three-year profit margin averaging nearly 9%, per analysts’ estimates.
The article WrestleMania’s Grapple with Growth originally appeared on Fool.com and is written by Arturo Cuevas.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
