Wanda Sports Reports Revenue Drop; Stock Down 2%
The stock in Wanda Sports Group Co. Ltd. (Nasdaq: WSG) was trading down 2% on Thursday afternoon, at $2.34 per American depositary share, after the company posted its financials.
In a statement today, WSG reported revenues of $283.1 million for the fourth quarter, down 3% year-over-year. Losses mounted to $290.3 million, or $2.13 per share, in contrast to a profit of $20.4 million in the year-end quarter of 2018, it said.
For the full year 2019, Dalian Wanda Group's sports entity posted $1.2 billion in revenues on loss of $307.4 million.
The company noted its 2019 acquisitions, including a deal with World Athletics to host an annual Diamond League meeting in China. It will also partner with NBA on the events in Italy and France and has landed a six-year agreement with The International Olympic Committee for the media rights to Sub-Saharan Africa for all Olympic events until 2024.
Wanda Sports' chief executive, Hengming Yang, said in the statement, "2019 was a busy year…" He noted that WSG has refinanced a 364-day term loan facility and has arranged to sell the Ironman Group, which he hopes "will unlock significant shareholder value."
Yang said that the Covid-19 had an impact on the company that is hard to sum up as the uncertainty continues.
WSG operated 62 events in the fourth trimester compared with 70 events in the preceding year-end quarter. For the year 2019, the company hosted a total of 343 events, a 5% increase over 2018.
Wanda Sports, owned by Chinese conglomerate Dalian Wanda Group, completed its IPO in New York in July 2019, raising $190 million in a downsized offering. It sold its shares at $8 apiece and has since had a rough time in trading, with a peak of $6.24 and a low of $1.36 per ADS. The company is facing lawsuits in the United States from investors' rights litigators who allege that the company distributed "materially misleading" business information to the public and caused damage to investors.