WWE First Quarter Financial Results For 2010 Inside Here
By Ryan Clark | May 06, 2010 |
STAMFORD, Conn.--(BUSINESS WIRE)--World Wrestling Entertainment, Inc. today announced financial results for its first quarter ended March 31, 2010. Revenues totaled $138.7 million as compared to $107.8 million in the prior year quarter. Operating income was $37.3 million as compared to $16.7 million in the prior year quarter. Net income was $24.7 million, or $0.33 per share, as compared to $10.3 million, or $0.14 per share in the prior year quarter. There are several items that impact comparability, primarily the timing of WrestleMania® XXVI. Excluding these items, revenues totaled $109.9 million, adjusted operating income was $22.6 million and adjusted net income was $14.7 million, or $0.20 per share.
"In the first quarter, we delivered significant growth in earnings and profitability, reaching our highest operating margin in our recent history," stated Vince McMahon, Chairman and Chief Executive Officer. "WrestleMania XXVI attracted more than 70,000 fans and contributed profits of over $13 million for the second consecutive year. Looking ahead, our faith in the future is strengthened by the ongoing power of our brands, the strength of our partnerships and our ongoing focus on operating efficiency. We remain confident that we can achieve our targeted earnings growth and drive greater profits." As previously communicated, the WWE business outlook targets average annual earnings growth of 15% to 20% over the 2009-2012 period.
Comparability of Results
WrestleMania XXVI occurred on March 28, 2010, and consequently, is included in our first fiscal quarter financial results. However, WrestleMania XXV occurred on April 5, 2009 and was included as part of our second quarter results in 2009. WrestleMania XXVI contributed approximately $28.8 million of revenues, $13.1 million of profit contribution ($8.8 million, net of tax) and $0.12 of EPS from across our various business lines in the current quarter. The Q1 2010 results also reflect an infrastructure tax credit which reduced depreciation and amortization expense by $1.6 million. In addition, Q1 2009 results included approximately $2.2 million of restructuring related expenses associated with our headcount reduction that occurred in January 2009. For comparative purposes, schedules showing the Adjusted Operating Income, Adjusted EBITDA and Adjusted Net Income, excluding the impact of WrestleMania XXVI and these items, have been provided in the supplemental information included in this release.
Results by Business Segment
Revenues from North America and outside North America increased 28% and 33%, respectively, led by our Live and Televised Entertainment segment. Excluding the impact of WrestleMania XXVI, revenues from North America decreased 3% and outside North America increased 19%. In addition, there was an approximate $2.1 million favorable impact from foreign exchange rates.
Venue Merchandise revenues were $6.5 million as compared to $4.6 million in the prior year quarter. The increase is due to higher per capita sales of $10.33 in the current quarter as compared to $9.29 in the prior year quarter. Excluding the impact of WrestleMania XXVI, revenues were $4.9 million and per capita sales was $8.41 in the current quarter.
Television Rights Fees revenues were $29.4 million as compared to $24.9 million in the prior year quarter. This increase was primarily due to license fees received from our new WWE Superstars television show and contractual increases from our existing programs.