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
The Rock At Oscar Rehearsals, WWE Wishes TNA Knockout Happy Birthday, Daniel Bryan (Video)
Mark Andrews On Wrestling Pete Dunne In WWE NXT, What Takes A Toll On His Body, Going For Two Titles
DDP On "Getting Choked Up" During Triple H's Phone Call, Dusty Rhodes And Jake Roberts' Influence
Kevin Owens Attacks Chris Jericho At Live Event (Video), Goldberg Tweets Asuka, Liv Morgan - Aliyah
Bret Hart Shares Personal Story About Donald Trump, Talks Linda McMahon In Trump's Administration
New WWE Signing (Photos), WWE Shop Sale, Ric Flair's Wildest Outbursts (Video), SmackDown In Iowa
Jeff Jarrett On How Vince McMahon "Destroyed" WCW, TNA Wrestlers Success In WWE, Intergender Matches
Matt Sydal On What He Felt Like While Working For WWE, How He Would Describe His Time With TNA, More
WWE Announcer Tom Phillips Caught Trying To Have An Affair?, Sets Social Media Accounts To Private
Former WWE Star Confirms WrestleMania Appearance, WWE UK Matches Announced For Main Roster Tour
Big Show Says Shaq Is Trying To Back Out Of WrestleMania Match, Daniel Bryan & Brie Bella, WWE Stock
Big WWE 2K17 Botch (Video), Kurt Angle And Becky Lynch Appearance, WWE Shop Sale, RAW In Kansas City
Sean Waltman On His Interaction With Vince McMahon At WWE RAW, Trying To Get Bret Hart In The Kliq
Bruce Prichard On If Vince McMahon Is "Out Of Touch", Vince Not Eating With His Hands, Donald Trump
Paige Tweets Actress Playing Her In "Fighting With My Family," WWE RAW Rating, Brian Kendrick "Pick"
Kevin Owens Takes Shot At Goldberg Being Part-Time, WWE Stars And Their Pets, The New Day (Video)