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
Jay Lethal On If He Thinks WWE Will Partner With ROH, Working With Ric Flair, "Black Machismo"
The Young Bucks Talk Their ROH Contracts Running Out, Having Other Offers
John Cena Set To Host NBC's "SNL"
The Rock's "Ballers" Is Moving, Brie Bella On Making Dog Chews (Video), WWE Stock Drops
How Was TNA Impact Wrestling Viewership After Last Week's Record Low?
The Rock Plugs New WWE Studios Film, Nikki Bella Slides Down A Firepole (Video), "Incarnate" Reviews
Today In History (12/02): Rebellion PPV, Crash Holly Wins Gold, Turning Point PPV, Hakushi
Jimmy "Superfly" Snuka Trial Update, Snuka Apparently Only Has Six Months To Live
** SPOILERS ** WWE NXT Tapings For December
Backstage News On Original Plans For Roman Reigns Vs. Kevin Owens Match On WWE RAW
WWE Offering Very Unique Contracts To Indie Wrestlers, Called "Mark Deals" By Some, UK-Only TV Show?
Match Stopped At WWE NXT Tapings After Enhancement Talent Takes Brutal Bump (Video, Photos)
Colt Cabana On CM Punk's Relationship With WWE Affecting Their Interest In Him, Steroids, Triple H
Big Update On Indie Wrestling Promotions Possibly Airing On The WWE Network
Wrestler Returns To WWE NXT To Announce (Photos)
Goldberg Back To Training (Photo), WWE RAW Rating Up, Triple H - Stephanie McMahon Flashback Video