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.
Flashback Friday: Justin Gabriel Talks Pitching An Idea For Vince McMahon To Be Adam Rose's Bunny
Moose Talks His ROH Contract, Working With Okada, Who Set The Tone On The Patriots, More
Vince Russo On Ryback's Contract Negotiations, Ryback's Actions At WWE Payback, More
Hornswoggle On His WWE Release, Charlotte Tapout Video, Newcomers Set For WWE NXT UK Tour
WWE Releases Former Money In The Bank Winner, Updated List Of Eight Stars Released
WWE Fans May Be Able To Watch RAW And SmackDown Live Online Soon
El Torito Comments On His WWE Release, Flairs Video From Wrigley Field, Eva Marie - Maryse Photo
Ryback's Interesting WWE Contract Demand, Footballer Talks Being An Undertaker Fan, WWE Shop Sale
Rumors On WWE Releases Coming Tomorrow, Darren Young Comments On Bob Backlund, Rusev And Lana
Backstage Updates On Seth Rollins And Randy Orton Returning To WWE TV, Shinsuke Nakamura Sales
WWE Star Injured At Last Night's WWE TV Tapings?, WWE RAW Rating Up, Labor Day RAW
Shane McMahon's WWE Status, Extreme Rules IC Title Plans, Dean Ambrose Vs. Chris Jericho, Attendance
Steve Austin Reveals Real Reason Why He's Not Hosting WWE Network Podcast With Shane McMahon
Former WWE Star Knocks Ryback And Cameron, Prince Correction, WWE Stars Who Lost Debuts, SmackDown
Another WWE Female Talent Sidelined With An Injury
Steve Austin On Simon Gotch Throwing Enzo Too Hard, Talking To Enzo After The Injury, More