Television

WWE reports decline in 4Q revenue, operating income

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MUMBAI: World Wrestling Entertainment (WWE) has announced financial results for its fourth fiscal quarter ended 30 April 2006. Revenues totaled $114.3 million as compared to $118.3 million in the prior year quarter and operating income was $15.1 million as compared to $22.5 million in the prior year quarter.

In India, viewers can catch WWE action on Ten Sports.

WWE reported net income of $10.6 million as compared to $16.1 million in the prior year quarter. WWE CEO Linda McMahon says, “Our fourth quarter operating results capped off a very successful year as we generated $400 million in revenues in fiscal 2006, reflecting strong performances by our home video, licensing and digital media businesses.

"In the fourth quarter, we continued to make strategic investments in key areas such as our digital business initiative and global marketing campaigns. Our WrestleMania 22 results in the fourth quarter continue to demonstrate the power of both that event and of the overall WWE brand and their respective places in pop culture. Also, we are relaunching the ECWbrand via weekly television performances on the Sci Fi Channel and through a distinct touring group performing in smaller venues. This type of performance gives our fans a different wrestling experience. Raw, SmackDown and ECW now represent a portfolio of WWE brands for fans of all ages and interests to enjoy.”

Revenues from live and televised entertainment businesses were $92.3 million for the current quarter as compared to $102.2 million in the prior year quarter, a decrease of 10 per cent primarily reflecting the absence of domestic cable ad revenues.

Pay Per View (PPV) revenues were $35.4 million as compared to $34.6 million in the prior year quarter. There were four PPV events produced in the current quarter as compared to three events in the prior year quarter. International events generated approximately $13 million in the current quarter as compared to $16.0 million in the prior year quarter.

The current quarter included a highly successful 16 event European tour as well as several events in emerging territories, including the Philippines and Thailand. Although the emerging territories yield lower revenues as compared to other international markets, WWE says that these tours, combined with its TV presence, establish our brand presence which allows it to develop the other businesses such as licensing, PPV and home video sales.

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