The coronavirus outbreak has been affecting sporting events across the globe and just in the last 24 hours, both the NBA and XFL have suspended their ongoing seasons.
WWE has not remained unaffected either and the company recently confirmed that they are moving this week’s episode of SmackDown to the performance center.
Not only that but the promotion has also canceled Sunday’s live event in Youngstown, Ohio and more events are expected to be rescheduled or canceled in the coming times.
These changes are expected to affect the company’s financial performance and so the officials are trying to assure the investors that they are prepared to handle the situation.
The company recently released a statement regarding the epidemic affecting their business and revealed that they have financial resources available in cash and debt capacity to manage the challenges ahead, totalling in more than $0.5 billion.
You can check out their full statement below:
WWE Statement on Potential Impact of COVID-19
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.