WWE Reports 2013 Second Quarter Results: Vince McMahon Comments On Earnings Declining
Live and Televised Entertainment
Revenues from our Live and Televised Entertainment businesses increased 7% to $125.3 million primarily due to the expansion of rights fees from the production and licensing of our television programs and the performance of WrestleMania XXIX. Compared to the prior year event, WrestleMania XXIX contributed $6.2 million in additional revenue, which is predominantly included in the Live and Televised Entertainment business segment, as higher ticket and merchandise sales were partially offset by a reduction in pay-per-view buys.
- Live Event revenues increased 13% to $40.1 million driven by the strong performance of WrestleMania XXIX and the timing of our Fan Axxess events held in conjunction with WrestleMania, which more than offset changes in the mix of live events, and the impact of fewer events in international markets. (Fan Axxess occurred primarily in the first quarter 2012 versus the second quarter 2013).
- There were 87 total events in the quarter, including 65 events in North America and 22 events in international markets, as compared to 87 events in the prior year quarter, including 57 events in North America and 30 events in international markets.
- North American events generated revenues of $30.1 million as compared to $22.3 million in the prior year quarter representing revenue growth of $7.8 million that was predominantly due to a 39% increase in the average ticket price of WrestleMania, the timing of Fan Axxess, which added $2.3 million in revenue to the current year quarter and the scheduling of eight more events in the quarter. Overall, including the impact of WrestleMania, average ticket prices increased 13% to $64.23 while average attendance declined approximately 2% to 6,300. Excluding WrestleMania, average ticket prices increased approximately 2% to $41.44 while average attendance declined approximately 2% to 5,300.
- International live events generated revenues of $10.0 million as compared to $13.1 million in the prior year quarter, reflecting a 27% decline in the number of events, with eight fewer events in the quarter. Partially offsetting the impact of fewer events, average International ticket prices increased 7% to $68.16 and average attendance increased 6% to approximately 6,600 from 6,200 in the prior year quarter. The increases in average ticket price and average attendance were due to changes in territory mix as the prior year quarter included weak attendance at our events in Mexico and our first live event in Brazil, a market with long-term strategic importance to WWE.
- Venue Merchandise revenues increased 28% to $6.9 million from $5.4 million in the prior year quarter primarily due to the timing of our Fan Axxess activities (described above). Total paid attendance in North America increased 11% while per capita merchandise sales at those events were essentially unchanged from the prior year quarter.
- Pay-Per-View revenues were $37.1 million as compared to $40.8 million in the prior year quarter, representing a $3.7 million decline primarily attributable to the timing of one less pay-per-view event in the quarter. The Over The Limit pay-per-view event is scheduled for the fourth quarter of 2013 versus the second quarter 2012. Revenue from the three events in the quarter declined 3% versus the prior year quarter as a combined 13% decline in buys was nearly offset by a 12% increase in the average revenue per buy. The shortfall in revenue from these events, however, was offset by an increase in buys for prior period events. The rise in revenue per buy was due to an approximate 9% increase in the domestic retail price charged for viewing WrestleMania and to a higher proportion of buys to view the Company's events in high definition, which generally garners a higher retail price.