Stamford-based World Wrestling Entertainment Inc. posted a second-quarter loss Thursday and announced plans to cut 50 to 60Â jobs across all departments after pouring resources into its new digital subscription video service.
The producer of the TV shows “Smackdown” and “Raw” reported a net loss of $14.5 million, or 19 cents per share, in the second quarter compared to a net gain of $5.2 million, or 7 cents per share, in the same period last year. Earnings performed slightly better than expected, as the company anticipated a net loss between $15 million and $18 million with the buildup of the digital service, WWE Network.
“WWE’s core business metrics remain strong, and WWE Network continues to be the single greatest opportunity to transform WWE’s business model,” said Vince McMahon, chairman and CEO of WWE, in a statement.
The company in a press release said it increased its expected 2015 net operating income by $30 million, partly due to the staff cuts, which represent 7 percent of its workforce.
The digital service, launched in February, has reached 700,000 subscribers, with a net gain of 33,000 in the second quarter.
The company plans to make the U.S. version of the WWE Network available in 170 countries, including Australia, New Zealand, Hong Kong, Singapore, Mexico and Spain, starting Aug. 12. The company said the network will go live in the U.K. by October.
