WWE Reports 2013 Second Quarter Results: Vince McMahon Comments On Earnings Declining

  • Television revenues increased 17% to $38.0 million from $32.4 million in the prior year quarter primarily due to the production and licensing of new programs. During the latter half of 2012, an additional hour of Raw was licensed to the USA Network, a new original series, the WWE Main Event, was licensed to ION Television, and a Saturday morning kids' show, WWE Saturday Morning Slam, was introduced on The CW Network. Growth also reflected, to a lesser degree, contractual increases for our existing programs both domestically and internationally.

Consumer Products

Revenues from our Consumer Products businesses decreased 2% to $15.7 million from $16.1 million in the prior year quarter, primarily due to declines in our Home Entertainment business as described below.

  • Licensing revenues of $6.7 million were essentially unchanged from the prior year quarter. Royalties from the sale of toy products increased approximately 15%, or $0.5 million, led by higher sales of action figures in the U.S. with strong domestic retail support. Increased sales of toy products, however, were offset by a comparable reduction in video game revenue. With the transition to a new video game licensee, Take-Two Interactive, shipments of our franchise video game, WWE '13, declined 65% in the quarter to 77,000 units as compared to the corresponding game in the prior year quarter.
  • Home Entertainment net revenues were $7.1 million as compared to $7.8 million in the prior year quarter. The 9% decline reflected a reduction in estimated sell-through rates and lower revenue from our international licensing activities. Domestic home entertainment revenue fell approximately $0.4 million, or 6%, as a 15% increase in shipments to nearly 1.0 million units was more than offset by a 13% decline in the average price per unit to $10.59 and a rise in estimated returns (41% vs. 39% of gross revenue). The change in projected returns derived from an increase in catalog shipments over the last twelve months, which historically have been characterized by lower sell-through rates. Revenue from our international licensing activities declined by approximately $0.3 million due to the transition to a new licensee in the EMEA region.
  • Magazine Publishing net revenues of $1.3 million were essentially unchanged from the prior year quarter.

Digital Media

Revenues from our Digital Media businesses were $9.2 million as compared to $7.8 million in the prior year quarter, representing an 18% increase.

  • WWE.com revenues increased 27% to $6.1 million in the quarter due to higher sales of advertising across various digital platforms. Supporting the growth in advertising, key digital metrics such as unique visitors to the Company's website and mobile app, average monthly page views, and CPM's (a measure of pricing) increased from the prior year quarter.
  • WWEShop revenues of $3.1 million were essentially unchanged from the prior year quarter as the number of online merchandise sales of approximately 63,000 orders and the average revenue per order of $47.92 were on par with the prior year quarter.

WWE Studios

WWE Studios recognized revenue of $2.1 million as compared to revenue of $0.6 million in the prior year quarter, reflecting the impact of a current quarter release, No One Lives, and the timing of results generated by our overall portfolio of movies, including the impact of The Marine and The Marine 2, which were released in prior periods. Although five films were released during the first half 2013, including two films in the current quarter (No One Lives and 12 Rounds 2: Reloaded) and the successful release of The Call in the first quarter, revenues for these movies will be recognized on a net basis as participation statements are received from our distribution partners rather than upon release as was the case with the Company's self-distributed movies. In general, for movies that are not self-distributed, the Company does not expect to begin recognizing revenue until four-to-six months after release. As such, the recognition of revenue related to The Call is not expected until the second half of 2013.

PAGE: «   1   2   [ 3 ]   4   5   6 »

Follow Raj Giri on Twitter at @RajGiri_303. Got a news tip or correction? Send it to us by clicking here.

« Previous Headline | Comment | Main | Next Headline »

WrestlingInc.com is the largest independently owned wrestling website in the world (Source: Alexa). Follow us (@WrestlingInc) on Twitter, become a fan on Facebook:

Back To Top