WWE Fourth Quarter Earnings Conference Call Highlights
|By Raj Giri||February 28, 2013 | Comments|
McMahon noted improved pay-per-view and home entertainment products, as well as increases in digital media and TV rights. 100% growth in Facebook and Twitter followers, and said that it will continue to grow. He touted that they are #2 for action figures in the U.S. He called the last quarter a "generally good quarter." Vince noted that the PPV with the Rolling Stones opened other doors, and cited partnerships with Hulu, Susan G. Komen and Hire Heroes. He said that they completed the video game deal with Take-Two, which is "very exciting." He also mentioned adding the third hour of RAW, Saturday Morning Slam and WWE Main Event, which reaches a different demo.
Vince said that 2013 will be flat in terms of EBITA.
George Barrios took over the call. He said that the company produced new programming, and the number of hours of domestic original programming increased from 4 hours per week to 6.5 hours per week. He mentioned the Hulu deal again, and said that there was a 12% increase in television viewers. He mentioned that they doubled their Facebook and Twitter followers to 130 million. White then went over the earnings report, which you can download here. After going over the earnings, he went over the Outlook Release, which you can download here.
After Barrios' presentation, they went to the Q&A.
- Distribution deals for RAW and SmackDown, as well as deals in UK & India will be renegotiated over the next few years.
- Will not give a prediction for when the Network will launch. They feel optimistic about launching it, but won't give dates.
- With the Network, WrestleMania would remain on pay-per-view, other pay-per-views would move to the Network. They said that WrestleMania accounts for more than half their pay-per-view earnings.
- They mentioned that Take-Two blew them away with their vision, but that structurally the deal with Take-Two is a little different than with THQ. They said that they were behind the curve during their time with THQ. The THQ bankruptcy will cost the company around $4-$5 million.
- On if the Network will be PG. Vince said that not all programming will necessarily be PG. Vince noted that a lot of their films are rated R. He said that edgier programming could be shown later in the evening, etc.
- Talked about their upcoming films Dead Man Down, The Call and The Marine 3. Vince called the commercial releases of Dead Man Down and The Call "very important" and will be telling of their new model.
- On the effect the Network will have with pay-per-view distributors, White wouldn't discuss their agreements with distributors.
- A question was asked about benchmarks for the Network and when they would perceive it to be at a steady state. He said 1 million subscribers was the break even number. They believe that 3-4 million subscribers will be reached. They said they will have a better gauge of how the model is working after 6-12 months per system.
That concluded the call.
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