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
WWE Superstars Recap: Final Episode With SMACKDOWN Live Stars, The Dudleyz In Action, The Usos
The 50 Greatest Wrestlers Of The Last 50 Years: Shawn Michaels Joins The List
Randy Orton's Greatest RKOs Outta Nowhere, Takeover Announcement On WWE NXT, The Miz - Nationals
Kurt Angle Judging The Rock's Promo Contest (Video), The Club On WWE Ride Along, WWE Power Rankings
WWE SmackDown Live Pre-show Update, Full WWE Panel Video From Comic Con, Fans On New GMs
Lita's New On-Air WWE Role Revealed
Ricochet Talks Possibly Signing With WWE, Living With Apollo Crews, Finn Balor Being "The Guy," More
WWE Star Off The Road Due To Backstage Fight?, WWE NXT Star Busted Open, WWE Back To Chile
Roman Reigns WWE Suspension Ends, Paige "Deletes" Alberto Del Rio, WWE Stars At Comic-Con
Two Former WWE Superstars Returning To The Main Roster Soon
Roman Reigns Returns At WWE Live Event, Issues Statement
Who Won The Backstage Fight At WWE SmackDown?, WWE Considering More Squash Matches On TV
Kevin Nash Wants To Return To WWE As Dolph Ziggler's Diesel, New Day Reaches Milestone, WWE Shop
Former WWE GM Says MVP And Shelton Benjamin Are Returning To WWE, MVP Responds
New Behind-The-Scenes CM Punk And AJ Lee Photo, RAW And SmackDown At Same Arena, Sasha Banks
Lita's New On-Air WWE Role Revealed