Unallocated SG&A expense was $32.2 million for the current year quarter as compared to $26.4 million in the prior year quarter. The rise in expense was driven by increases in compensation and benefits of $2.4 million, talent development costs of $1.0 million, marketing expenses of $1.0 million, and higher consulting and professional fees. The increases in these expenses were primarily to support our content related initiatives, including the potential launch of a WWE network.
Operating Income Before Depreciation and Amortization (OIBDA)
OIBDA was $14.9 million in the quarter as compared to $24.4 million in the prior year quarter. The decline in OIBDA was primarily due to increased staffing expenses, timing of our pay-per-view events, and lower profits from WrestleMania. These items more than offset the expansion in rights fees from the licensing of our television and digital content. Compensation and benefit expenses increased approximately $4.8 million with a 10% increase in headcount predominantly to support our various strategic initiatives. Pay-per-view results (excluding WrestleMania) declined $3.4 million as we had both one less pay-per-view event in the quarter and a reduction in production tax credits that was also due to timing. Although WrestleMania XXIX was the highest grossing and second most profitable event in the Company's history, overall profits from WrestleMania (inclusive of the Pay-Per-View, Live Event and other businesses) declined $1.2 million from the prior year as a 15% reduction in pay-per-view buys and increased talent and production costs more than offset the impact of higher live event ticket and pay-per-view pricing. Based on the increased investment and changes in business mix, WWE's OIBDA margin was 10% in the quarter as compared to 17% in the prior year quarter.
Depreciation and amortization
Depreciation and amortization expense totaled $6.1 million for the current year quarter as compared to $4.8 million in the prior year quarter. The increase in depreciation and amortization expense derived from our investment in assets to support our content initiatives including efforts to launch a potential network.
Investment Income, Interest and Other Expense, Net
Investment income, interest and other expense, net yielded an expense of $0.4 million compared to $0.9 million in the prior year quarter, primarily reflecting decreases in realized foreign exchange losses and lower expenses associated with other non-income taxes in the current year quarter as compared to the prior year quarter.
Effective tax rate
In the current quarter, the effective tax rate was 38% as compared to 36% in the prior year quarter.
Summary Results for the Six Months Ended June 30, 2013
Total revenues for the six months ended June 30, 2013 were $276.3 million as compared to $264.7 million in the prior year period. Operating income for the current year period was $14.9 million versus $35.6 million in the prior year period. Net income was $8.2 million, or $0.11 per share, as compared to $27.3 million, or $0.36 per share, in the prior year period. OIBDA was $26.2 million for the current six month period as compared to $44.4 million in the prior year period.
Excluding items that impacted comparability on a year-over-year basis, Adjusted Operating income was $16.2 million compared to $36.4 million in the prior year period, and Adjusted Net income was $9.1 million, or $0.12 per share, compared to $23.7 million, or $0.32 per share, in the prior year period.
Young Bucks Selling Out At Hot Topic, Manners - Rules At NJPW G1 Special, IWGP Title Fixed (Photos)
Ethan Carter III On Blurring The Lines Between Good And Bad, Wanting To Work More, Crowd In India
Awesome Kong Reveals Plans She Discussed With Triple H For Kharma That Never Happened In WWE
Ric Flair On WWE HOFer Pulling Gun On Randy Orton's Dad, What Randy Did After First World Title Win
Paige Comments On Breakup?, Io Shirai Not Starting With WWE Anytime Soon, Triple H Vs Eddie Guerrero
Alberto Del Rio Breaks Up With Paige
WWE On Why Shinsuke Nakamura Missed Saturday's Live Event, Bobby Fish In NXT (Video), Justin Roberts
Impact Star Suffers "Nasty Injury", Former TNA Star In TV Show (Video), Wrestlers In Christmas Movie
** SPOILERS ** WWE NXT Tapings For June & July
Brock Lesnar Added To House Show, Rap Group Sent Cease And Desist To WWE?, Goldberg (Videos)
Speculation On Change To Brock Lesnar's WrestleMania Plans, John Cena Note, Rock Fan Stops Traffic
More On Daniel Bryan Possibly Wrestling Again, Recent Testing, When His WWE Contract Expires
Alberto Del Rio Breaks Up With Paige
ROH Best In The World Results: Who Left As ROH Champion?, Title Changes
Backstage News On Mauro Ranallo's Return To WWE And His New Deal
Spoiler: Former ROH Star Makes WWE NXT Debut (Photo)