WWE Pinned

Times are not good for the Masked Marauder or his cohorts at World Wrestling Entertainment Inc. (NYSE: WWE  ) . The tough economy makes filling those arenas with choreographed mayhem as tricky as pinning Andre the Giant.

For the third quarter, company revenues fell 2% from last year, and year-to-date (YTD) revenues are down about 1%. The only reason net income isn't down is because of large cuts to expenses -- $9 million to SG&A this quarter and $15 million YTD. This bad news is somewhat offset by free cash flow numbers. The wrestlers dragged $515,000 of it into the ring this quarter, and $23 million YTD. Fortunately, the company sits on $84 million of cash with only $2 million of debt, so while things are slow, it is by no means in danger of being disqualified.

The notable thing about an investment in World Wrestling Entertainment is that its business is based entirely around discretionary income, and that's not something people have a lot of these days. The business is essentially held hostage by the economy. However, it's interesting that companies like Cedar Fair (NYSE: FUN  ) are seeing upticks in attendance. Revenue is spiking at Wynn Resorts (Nasdaq: WYNN  ) and Las Vegas Sands (NYSE: LVS  ) , and retailers like Blue Nile (NYSE: NILE  ) are also seeing sharp increases in revenue. For whatever reason, people are spending their money on those fun things, but not on wrestling entertainment.

Still, the company is on solid footing financially and it's not like the business has vanished. It just isn't growing. That may not be reason enough to consider buying the stock, however, the 10.4% dividend sure looks nice. Present financials give me no reason to believe that dividend will be cut. Although with any such payout, I'd dig a little deeper to make sure it's sustainable.

So consider pulling on those spandex tights and jumping into the ring. The company isn't going away, and Vince McMahon is paying you to wait it out.