WWE Business Segments Up In First Quarter With One Notable Exception

As noted earlier, WWE released their 2012 first quarter results this morning. Revenues totaled $123.1 million as compared to $119.9 million in the prior year quarter. Revenues from North America increased 4%, with Live and Televised Entertainment increasing from $70.4 million in Q1 last year to $75.7 this year.

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However, net revenues from WWE Studios took a steep dive from the same quarter last year, dropping from $8.6 million to $4.8 million. In the prior year quarter the company released The Chaperone, while in the current quarter they released Bending the Rules. According to the report, Bending the Rules has generated lower than anticipated home video receipts in its initial weeks of release. As a result, the long-term ultimate projections for the film were revised and WWE recorded an impairment charge of $0.8 million contributing to an overall WWE Studios loss of $1.0 million in the current year quarter. This result compared to a loss of $3.6 million in the prior year quarter driven by the $2.8 million impairment for 12 Rounds.

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The following table reflects net revenues by business segment for the three months ended March 31, 2012 and March 31, 2011.

  Three Months Ended
Net Revenues by Business Segment March 31, 2012 March 31, 2011
Live and Televised Entertainment $ 75.7 $ 70.4
Consumer Products 35.5 34.8
Digital Media 7.1 6.1
WWE Studios 4.8 8.6
Total $ 123.1 $ 119.9

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