STAMFORD, Conn., Nov 03, 2011 (BUSINESS WIRE) — WWE WWE +1.26% today announced financial results for its third quarter ended September 30, 2011. Revenues totaled $108.5 million as compared to $109.6 million in the prior year quarter. Operating income was $15.9 million as compared to $20.3 million in the prior year quarter. Net income was $10.6 million, or $0.14 per share, as compared to $14.3 million, or $0.19 per share, in the prior year quarter. Impacting comparability of our year-over-year results were $5.1 million of film impairment charges in the current year quarter. Excluding the impact of the film impairments in the current quarter, Adjusted Operating income was $21.0 million as compared to $20.3 million in the prior year quarter. Adjusted Net income was $14.1 million, or $0.19 per share, as compared to $14.3 million, or $0.19 per share.
"In the third quarter, our results reflected the Company's continued focus on improving business results in a difficult environment," stated Vince McMahon, Chairman and Chief Executive Officer. "Despite the challenging economic headwinds, both domestically and abroad, we generated increased profits across a majority of our businesses, with the main exception being our film business which we continue to monitor and refine to improve future performance. We believe the sluggish economy and our ongoing talent transition were important factors that affected the results of our other businesses. Based on our history of developing talent and creating content with broad appeal, we are confident we can address our creative challenges. Further, by taking advantage of our strategic opportunities, including the anticipated 2012 launch of a WWE network, we can achieve meaningful growth."
Comparability of Results
The current year quarter results included $5.1 million in film impairment charges related to our films Inside Out, The Chaperone, and Knucklehead. In order to facilitate an analysis of our financial results on a more comparable basis, where noted, we have adjusted our results to exclude these film impairment charges from our third quarter of 2011 results. Adjusted Operating income increased 3% to $21.0 million and Adjusted EBITDA increased 5% to $24.6 million. (See Schedules of Adjustments in Supplemental Information) Please note that our revised film strategy utilizing a self-distribution model also has an impact on the comparability of results but is not adjusted in the aforementioned schedules.
Three Months Ended September 30, 2011 — Results by Business Segment
Total revenues declined 1% to $108.5 million driven primarily by declines in WWE Studios and Consumer Products, partially offset by Live and Televised Entertainment. Revenues from North America increased by 1%, led by growth in our Pay-Per-View and Home Video businesses. Revenues outside North America decreased 6%, primarily due to a decline in our Consumer Products segment, which was partially offset by an increase in Television rights revenue and favorable changes in foreign exchange rates.
The following tables reflect net revenues by segment and by region for the three months ended September 30, 2011 and September 30, 2010. (Dollars in millions)
Three Months Ended
Sept. 30, Sept. 30,
Net Revenues 2011 2010
——————————– ——— ———
Live and Televised Entertainment $ 78.1 $ 73.8
Consumer Products 19.8 21.4
Digital Media 6.9 6.8
WWE Studios 3.7 7.6
Total $ 108.5 $ 109.6
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