WWE Reports 2012 First Quarter Results
STAMFORD, Conn.- WWE announced financial results for its first quarter ended March 31, 2012. Revenues totaled $123.1 million as compared to $119.9 million in the prior year quarter. Operating income was $16.0 million as compared to $13.2 million in the prior year quarter. Net income was $15.3 million, or $0.20 per share, as compared to $8.6 million, or $0.11 per share, in the prior year quarter. There were several items that impacted comparability on a year-over-year basis, including expenses incurred in conjunction with our potential network, recognition of previously unrecognized tax benefits and film impairments. Excluding the impact of these items, Adjusted Operating income in the current quarter was $18.9 million and Adjusted Net income was $13.1 million, or $0.18 per share. In the prior year quarter, Adjusted Operating income was $16.0 million and Adjusted Net income was $10.3 million, or $0.14 per share.
"In the first quarter, EBITDA grew 19%, reflecting increased profits across all our businesses. Our results were highlighted by the strong performance of our live events as we entered a new market in the Middle East. We are very pleased that our positive first quarter execution continued in April with the successful staging of WrestleMania, which is expected to deliver nearly 1.3 million pay-per-view buys globally," stated Vince McMahon, Chairman and Chief Executive Officer. "Through the first quarter, we made important progress on our key strategic initiatives, developing our foundation for creating and distributing new content, and building on our tremendous brand strength, especially in social media. Looking ahead, we are confident that we will leverage the broad appeal of our content to transform our business and drive long-term earnings growth."
Comparability of Results
Our current year quarter results included a $0.8 million film impairment charge, related to our film, Bending the Rules, $2.1 million in network related operating expenses and a $4.1 million benefit due to previously unrecognized tax benefits. Prior year quarter results included impairment charges of $2.8 million, related to our film 12 Rounds, and a $0.1 million tax benefit. 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 items from our first quarter of 2012 results. (See Schedules of Adjustments in Supplemental Information).
First Quarter Results by Region and Business Segment
Revenues from North America increased 4%, led by the performance of our Live and Televised Entertainment segment. Revenues from outside North America were essentially unchanged from the prior year quarter. There was no significant impact from changes in foreign exchange rates in the current year quarter.
Live and Televised Entertainment
Revenues from our Live and Televised Entertainment businesses increased 8% to $75.7 million as compared to $70.4 million in the prior year quarter. The increase was primarily due to the performance of our live events and additional television rights fees, as described below.
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