WWE lowers operating income guidance for 2013

WWE cuts operating income guidance because of high leverage and lower revenue forecast

Associated Press

STAMFORD, Conn. (AP) -- WWE cut its 2013 guidance on Friday, pointing to high leverage and lower revenue expectations.

WWE said it is dealing with high operating leverage and added that "several recent developments" led to a 5 percent cut in its revenue estimate for the second half of 2013.

The company now expects to report $40 million to $50 million in operating income before depreciation and amortization, or OIBDA, excluding costs related to feature film amortization and impairments.

WWE reported $63 million in OIBDA in 2012 and had said that figure could rise as much as 10 percent or fall as much as 10 percent in 2013, or about $57 million to $69 million. In August WWE said it expected to reach the lower end of that range.

The company, formerly known as World Wrestling Entertainment Inc., produces wrestling events like WrestleMania and television shows such as Raw and SmackDown.

Its stock dipped 13 cents, or 1.3 percent, to $10.03 in aftermarket trading following the release of the updated guidance.

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