WWE Reports 2013 Third Quarter Results, Vince McMahon Comments
Effective tax rate
In the current quarter, the effective tax rate was 27% as compared to 30% in the prior year quarter. The effective tax rates in the current and prior year quarters were positively impacted by the recognition of previously unrecognized tax benefits.
Summary Results for the Nine Months Ended September 30, 2013
Total revenues for the nine months ended September 30, 2013 were $389.6 million as compared to $368.9 million in the prior year period. Operating income for the current year period was $18.1 million versus $40.7 million in the prior year period. Net income was $10.7 million, or $0.14 per share, as compared to $30.8 million, or $0.41 per share, in the prior year period. OIBDA was $35.9 million for the current nine month period as compared to $54.7 million in the prior year period.
Excluding items that impacted comparability on a year-over-year basis, Adjusted Operating income was $26.4 million compared to $41.5 million in the prior year period, and Adjusted Net income was $16.1 million, or $0.21 per share, compared to $27.2 million, or $0.36 per share, in the prior year period.
Nine Months Ended September 30, 2013 - Results by Region and Business Segment
Revenues increased 6% to $389.6 million as growth from North America was partially offset by declines from WWE's international markets. Revenues from North America increased 9% primarily due to the licensing of new television and digital content and an increase in the number and pricing of live events. Revenues from outside North America declined 6% primarily due to a reduction in the number of international live events and the timing of the Company's live event tour in Latin America as well as lower revenue from the sale of licensed products and home entertainment. Excluding revenue from Live Events, revenues from outside North America declined 2% in aggregate from the prior year period. There was no significant impact from changes in foreign exchange rates in the current year period.
Live and Televised Entertainment
Revenues from Live and Televised Entertainment businesses were $294.7 million for the current year period as compared to $271.8 million in the prior year period, representing an increase of 8%.
Revenues from Consumer Products businesses were $62.3 million for the current year period as compared to $67.4 million in the prior year period, representing a decrease of 8%.
WWE Studios recognized revenue of $5.8 million as compared to $7.3 million in the prior year period, reflecting the timing of results generated by the Company's portfolio of movies that were previously released. Although there were five films released in the current year period (12 Rounds 2: Reloaded, No One Lives, Dead Man Down, The Call and The Marine 3: Homefront), revenues for these movies will be recognized on a net basis as participation statements are received rather than upon release as was the case with the Company's self-distributed movies. As such, the recognition of revenue related to the majority of these films is not expected to begin until the fourth quarter 2013 or early 2014.
Based on revised ultimate expectations for the Company's movies, film impairment charges increased to $11.7 million in the current year period compared to $0.8 million in the prior year period. Impairments were primarily related to the Company's 2010-2012 film slate, as well as Dead Man Down, which was released earlier this year. As a result, WWE Studios generated a loss of $12.8 million compared to a loss of $4.3 million in the prior year period. Excluding the impact of film impairment charges, the WWE Studios' movie portfolio generated a loss of $1.1 million compared to an adjusted loss of $3.5 million in the prior year period.
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