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WWE Q1 revenue falls to $107.8 mn

Indiantelevision.com Team

(9 May 2009 4:35 pm)

MUMBAI: World Wrestling Entertainment (WWE) has posted revenue of $107.8 million for the first quarter ended 31 March 2009, down from $162.6 million a year ago.

Operating income was $16.7 million as compared to $27.1 million in the prior year quarter. Net income nearly halved to $10.3 million compared to $19.5 million in the prior year quarter.

North America generated revenues of $83.8 million compared with $128.7 million for the same quarter last year. Europe, Middle East & Africa (EMEA) generated revenues of $16.1 million compared with $23.2 million for the same period last year. The Asia Pacific region earned revenues of $6.2 million compared with $9 million a year ago.

WWE CEO Linda McMahon says, “Subsequent to the quarter, our 25th anniversary production of WrestleMania® set a record as the highest grossing live event in WWE history, attracting more than 70,000 fans and recording approximately 1 million pay-per-view buys for WWE.”

WrestleMania XXV occurred on 5 April, 2009, and consequently will be included in the second fiscal quarter financial results. However, WrestleMania XXIV occurred on 31 March, 2008 and was included as part of the first quarter results in 2008. WrestleMania XXIV contributed approximately $31.3 million of revenues and $7.1 million of profit contribution ($4.6 million, net of tax) in the first quarter of 2008.

Television Rights Biz

Television rights fees revenues were $24.9 million as compared to $24 million in the prior year quarter.

Revenues from live and televised entertainment businesses were $64.1 million for the current quarter as compared to $99.8 million in the prior year quarter. The 36 per cent decline in revenues primarily reflects the $31.3 million timing difference for WrestleMania.

Live Events Biz

Live Event revenues were $18 million as compared to $24.6 million in the prior year quarter, primarily due to the timing of WrestleMania XXIV. WrestleMania XXIV generated approximately $5.9 million in revenue in the prior year quarter.

There were 87 events, including four international events, during the current quarter as compared to 74 events, including eight international events, in the prior year quarter.

North American events generated $17.0 million of revenues from 83 events as compared to $21.8 million from 66 events in the prior year quarter. North American average attendance was approximately 6,100 in the current quarter as compared to 7,200 in the prior year, a decrease of approximately 15 per cent. The average ticket price for North American events was $33.54 in the current quarter
as compared to $45.39 in the prior year.

International events generated approximately $1 million of revenues as compared to $2.8 million in the prior year quarter. All four international events in the current period were structured as buy-out deals with guaranteed fixed revenues as compared to six of the eight international events being structured as buyout deals in the prior year quarter. Average international attendance in the current quarter increased by approximately three per cent to 9,300.

Pay-Per-View revenues were $13.6 million as compared to $41.2 million in the prior year quarter. There were two Pay-Per-View events produced in the current year quarter as compared to three in the prior year quarter.

Consumer Products Biz

Revenues from the Consumer Products businesses were $33.1 million versus $43.4 million in the prior year quarter, representing a 24 per cent decrease. Home Video net revenues were $9.2 million as compared to $14 million in the prior year quarter.

The decrease in home video revenues primarily reflects the release of two fewer titles than the prior year and a reduction in the sale of titles from the catalogue. DVD shipments declined 23 per cent to 912,000 units in the current period.

Licensing revenues were $19.8 million as compared to $26.2 million in the prior year quarter, primarily reflecting lower video game and toy sales. Video game revenues declined by $5.7 million, while revenues related to toys declined by approximately $0.6 million in the current quarter.

Revenues from the digital media related businesses were $6.9 million as compared to $8.1 million in the prior year, representing a 15 per cent decrease.

Movie Biz

WWE Studios recorded revenue of $3.7 million in the current quarter related to the three theatrical releases - See No Evil, The Marine, and The Condemned - as compared to $11.3 million in the prior year quarter. During the first quarter the company released its fourth feature film, 12 Rounds, which made $11.8 million in the US. In addition one Direct-to-DVD film Behind Enemy Lines: Colombia was released.