WWE Q2 revenues fall to $129.7m 07/08/2008 |
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World Wrestling Entertainment (WWE) has announced financial results for its second quarter ended June 30, 2008.
Revenues fell to $129.7 million as compared to $137.5 million in the prior year quarter. Operating income was $12.0 million against $9.7 million in the previous year.
Net income was $7 million, or $0.10 per share, as compared to $7 million, or $0.10 per share, in the prior year quarter. Revenue increased 19 per cent for the first six months of the year, with growth coming from across all the business units. Operating Income increased 29 per cent to $39.1 million, reflecting the impact of a $15.7 million film impairment charge recorded in the second quarter of 2007. Excluding this charge, operating income declined 15 per cent from the prior year.
WWE CEO Linda McMahon said, “The Company made important progress in terms of its fundamental operating objectives. We achieved a significant increase in revenue from our international operations, continued the strong growth of our live event, licensing and home video sales, and maintained improved trends in our pay-per-view business.
" However, for the first six months of the year our total operating expenses, on an adjusted basis, grew 27 per cent, exceeding the percentage growth in revenue. Although the rise in expenses broadly supports our top-line growth, the disproportionate growth in expenses is unacceptable.
"Therefore, we are implementing stronger cost control measures, reassessing our spending and the priority of our investments to drive increases in earnings and margins.”
Revenues from live and televised entertainment businesses were $86.8 million for the current quarter as compared to $102.9 million in the prior year period. Included in the prior year revenue was $31.4 million relating to WrestleMania 23.
Live event revenues were $35.3 million as compared to $30.1 million, primarily due to the strength of the company's international events. The prior year quarter included $5.4 million of revenue for WrestleMania 23.
There were 83 events, including 31 international, during the current quarter as compared to 84 events, including 26 international events, in the prior year quarter. International events revenue increased by approximately $9.2 million, based on two tours in Europe and Australia during the current quarter.
Pay-Per-View revenues were $17.9 million as compared to $39.8 million in the prior year quarter. There were four pay-per-view events produced in the current year as compared to five events in the prior year. WrestleMania 23 in 2007 generated approximately 1.2 million buys and $24.6 million in revenue in the prior year quarter.
WrestleMania in 2008 generated approximately 1.1 million buys and $23.8 million in revenue during the first quarter. Excluding WrestleMania, the buys for the four pay-per-view events held in the second quarter of both 2007 and 2008 increased by 6 per cent.
The pay-per-view event Vengeance was re-branded Night of Champions in 2008. Venue merchandise revenues were $5.2 million as compared to $5.4 million in the prior year quarter, as per capita spending by fans decreased by approximately $2.00 to $10.85 in the current quarter, reflecting $1.4 million of revenue for WrestleMania 23 in the prior year quarter. Partially offsetting this decline was an increase from venue merchandise sales at international events.
Television Rights Fees revenues were $24.7 million as compared to $23.9 million in the prior year quarter. This increase is primarily due to contractual increases in international rights fees. WWE 24/7® On Demand revenues were $1.8 million as compared to $1.3 million in the prior year quarter. The increase in revenues reflects the growth in the number of subscribers for video-on-demand programmes.
(Source: Indiantelevision.com)
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