Investment and Other (Expense) Income
Investment income was $0.5 million in both the current year quarter and prior year quarters. Other expense of $0.7 million, as compared to other income of $0.9 million in the prior year quarter, reflects foreign exchange losses of $0.4 million in the current year quarter as compared to foreign exchange gains of $0.9 million in the prior year quarter.
Effective tax rate
In the current year quarter, the effective tax rate was 32% as compared to 34% in the prior year quarter. The prior year rate was negatively impacted by a $0.4 million adjustment relating to differences between our tax returns as filed and our estimated tax provision.
Summary Results for the Nine Months Ended September 30, 2011
Total revenues through the nine months ended September 30, 2011 were $371.0 million as compared to $355.1 million in the prior year period. Operating income for the current year period was $50.1 million versus $67.8 million in the prior year period. Net income was $33.5 million, or $0.45 per share, as compared to $45.3 million, or $0.60 per share, in the prior year period. EBITDA was $61.0 million for the current nine month period as compared to $76.3 million in the prior year period. The current year period was impacted by $11.2 million in film impairment charges, while the prior year period reflected an infrastructure tax incentive which reduced depreciation and amortization expense by $1.6 million. Adjusting for these items, Adjusted Operating income for the current year period was $61.3 million versus $66.2 million in the prior year period. Adjusted Net Income was $41.1 million, or $0.55 per share, as compared to $44.4 million, or $0.59 per share, in the prior year period.
Nine Months Ended September 30, 2011 – Results by Business Segment
Total revenues grew 4% to $371 million driven primarily by an increase in Live and Televised Entertainment, which occurred mostly in North America. Growth in North America also reflected increased revenue from Licensing (within our Consumer Products segment) and from WWE Studios. Revenues from outside North America were essentially flat as growth from Television and WWE Studios and an approximate $3 million favorable impact from changes in foreign exchange rates were offset by a decline in Consumer Products.
Live and Televised Entertainment
Revenues from our Live and Televised Entertainment businesses were $259.0 million for the current period as compared to $249.5 million in the prior year period, an increase of 4%.
Revenues from our Consumer Products businesses were $76.2 million as compared to $75.4 million in the prior year, an increase of 1%.
Revenues from our Digital Media related businesses were $19.2 million as compared to $18.6 million in the prior year, an increase of 3%.
During the current year period, WWE Studios recognized revenue of $16.6 million as compared to $11.6 million in the prior year period, with the growth in revenue driven by an increase in the number of film releases (3 in the current year period as compared to 1 in the prior year period). Lower than anticipated performance of several films contributed to revised ultimate projections, which resulted in $11.2 million of impairment charges. Film profits declined $14.6 million from the prior year period driven by the aforementioned impairment charges and the increased distribution expenses associated with the higher number of releases under our self-distribution model in the current period as compared to the prior year period.
JTG Talks Preferring Vince McMahon To Triple H, Working With Paul Heyman, Heat In WWE, CTC Angle
Dwayne "The Rock" Johnson Offers His Thoughts On Hulk Hogan Controversy
Firemen Help With WWE Tough Enough Challenge, More On Daniel Bryan Book Success, ZZ Dressed Down
Kevin Nash Says WWE Has Taken The Market, Gives Credit To Triple H, Talks Being A Dolph Ziggler Fan
More On John Cena Suffering A Broken Nose, Big Jump For WWE Stock, Kevin Nash: Too Sweet
How Did Ring Of Honor's Late Airing Do On Destination America?, TNA Impact Viewership Up
Former WWE Creative Writer Speaks Out About Brock Lesnar Gay Character Storyline Pitch
Bray Wyatt's Sister Reportedly Gets A WWE Tryout
WWE Diva Announces Her Retirement
Backstage Update On Sting And WWE SummerSlam, Why WWE Wanted Sting On Roman Reigns' Team, More
John Cena Undergoes Surgery, Why Match Was Nixed On WWE SmackDown
More Racist Comments From Hulk Hogan During Conversation With Son Surface