Revenues from Consumer Products businesses decreased 15% to $13.4 million from $15.8 million in the prior year quarter, primarily due to declines in the Company's video game licensing and Home Entertainment businesses as described below.
- Licensing revenues were $5.7 million as compared to $7.1 million in the prior year quarter, driven primarily by a 24% reduction in video game shipments that resulted in a $1.3 million decline in video game royalties. Shipments of the Company's annual franchise video game, WWE '13, which was the last release developed by THQ, declined to 178,000 units as compared to 233,000 units for the corresponding game in the prior year quarter. Royalties from the sale of toy and apparel products were essentially flat to the prior year quarter, as modest growth in the U.S. was offset by lower sales in international markets. Additionally, a new installment of the Company's video game, WWE 2K14, was released by Take-Two Interactive in late October 2013.
- Home Entertainment net revenues were $5.2 million as compared to $6.4 million in the prior year quarter. Domestic home entertainment revenue fell approximately $0.8 million, or 15%, reflecting a 23% decline in shipments to approximately 720,000 units with 5 fewer releases in the quarter (7 in Q3 2013 vs. 12 in Q3 2012). The decline in shipments was partially offset by a 4% increase in the average price per unit to $11.41. Revenue from international licensing activities declined by approximately $0.4 million reflecting lower sales in Canada and the transition to a new licensee in the EMEA region.
- Magazine Publishing net revenues were $1.5 million as compared to $1.6 million in the prior year quarter.
Revenues from Digital Media businesses increased 15% to $8.6 million as compared to $7.5 million in the prior year quarter.
- WWE.com revenues increased 19% to $5.7 million in the quarter due to higher sales of advertising and digital content, including the Company's pay-per-view events, 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 CPMs (a measure of pricing) increased from the prior year quarter. The Company launched digital distribution of its pay-per-view events on the Microsoft Xbox Live on the Xbox 360 in April 2013 and on the Sony Entertainment Network on PlayStation 3 in August 2013.
- WWEShop revenues increased to $2.9 million in the quarter as compared to $2.7 million in the prior year quarter based on an 11% increase in the volume of online merchandise sales to approximately 59,800 orders. The average revenue per order increased 2% to $48.87 in the current year quarter.
WWE Studios recognized revenue of $1.8 million as compared to revenue of $1.9 million in the prior year quarter reflecting the timing of results generated by the Company's overall portfolio of movies. Five films have been released during the first nine months of 2013, which compares to three releases during the first nine months of 2012. Revenues for current projects will be recognized on a net basis as participation statements are received from 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 most recent releases, including 12 Rounds 2: Reloaded and The Call is not expected to begin until the fourth quarter 2013 or early 2014.
Short URL: http://winc.cc/p9Gct1
More Details On Bo Dallas Being Kicked Off Plane, Seth Rollins Heat With Airport Gate Agents
Zack Sabre Jr. Talks Daniel Bryan Giving Him Advice, Possibly Signing With WWE
CM Punk's Teammate Says Punk Will "Surprise Some People"
WWE Live Event Results From Puebla (8/28): Charlotte Vs. Bayley, Roman Reigns Vs. Seth Rollins
Bo Dallas Update, The Rock And Steve Austin On Canvas 2 Canvas, Meet Enzo & Big Cass
WWE Live Event Results From San Angelo (8/27): Dean Ambrose Defends Against AJ Styles & Bray Wyatt
WWE Looks At Stars Getting Manhandled (Video), Darren Young Works Out With Bob Backlund, Sheamus
Kurt Angle Talks Brock Lesnar Busting Randy Orton Open, Lesnar's UFC Suspension, Lesnar Fighting
Rumors Of WWE Star Getting Kicked Off Plane, Terri Runnels Reveals Which WWE Angle She Hated, More
Former WWE Tag Champions Returning To SmackDown Live?
WWE Superstar Officiates Sasha Banks' Wedding Ceremony
WWE Open To Daniel Bryan Wrestling Again?, WWE Shop Sale, Chris Jericho Anniversary
WWE Clash Of Champions Poster, Which Twitter Accounts Were Suspended During SummerSlam?, The Revival
John Cena - Smackdown News, Why SmackDown Stars Won't Be At WWE RAW For First Time Since Brand Split
Daniel Bryan On His Original WrestleMania 32 Plans, Wanting To Be Cleared To Face Brock Lesnar, CWC
Update On Reports Of More People Watching "NXT: Takeover" Than WWE SummerSlam