Vince McMahon Speaks Out - SD!'s Move, 'Mania, & More
WWE released their First Quarter Financials for 2010 earlier today. At 11AM, they had their quarterly conference call. Here are some highlights from that call?
Chairman and Chief Executive Officer Vince McMahon, Chief Financial Officer George Barrios and Chief Operating Officer Donna Goldsmith were on hand for today's conference call.
Vince started off with the good news that the profit margin for the quarter was one of the highest in company history. The bad news was that WrestleMania dropped in buys. McMahon did admit that the event may not have been "exactly what everyone wanted to see," but also said that communal viewing of the event could have hurt it as well.
The move of Smackdown to SyFy was discussed, which he felt was a good move and could add to the international business growth. He is also happy about the new toy line from Mattel. Chief Financial Officer George Barrios did a quick review of the First Quarter Financials, and then we had some question and answer time.
On WrestleMania dropping buys, Vince said that he felt the branding of last year's event as the "25th Anniversary" created nostalgia. WrestleMania did add greatly to the quarterly numbers, but was not quite what they hoped for. It was down 12% from last year's event. He noted that, "it was a good attraction, not a great attraction and sometimes you just don't give them great attractions all the time. It's the creative process, and that's the process we're in."
As for Phoenix as a host city, he felt that the city out performed as the host, and said all involved should be applauded.
Vince would not blame the economy for the drop in WrestleMania, stating that too many use that as an excuse. He related that many promoters would always make excuses for not drawing, with he exception of Bobo Brazil, because he did not believe in excuses. Bobo would say that you just can't blame it on anything else people may have decided to go with that night.
Chief Financial Officer George Barrios and Chief Operating Officer Donna Goldsmith said that they are constantly evaluating how many PPVs and live events that the company runs. They did note that there are less PPVs this year as opposed to last year.
They discussed the WWE Studios projects, noting that they were aiming for projects in the $5 million range from now on.
On the decline in video game sales, they said that it was due to "the changeover in game platforms."
Vince noted that the Rumble and Elimination Chamber did increase buys, and was asked if competition (UFC 111 on the same weekend) hurt WrestleMania. Vince stated, "We're not sure if it has or not, you're talking about two relatively different audiences, completely. The UFC audience, which I guess is what you are referring to, is more of a boxing audience than an entertainment thing, like we are. Nonetheless, there has been some of that, but from a scheduling standpoint, we can't control that. Going forward, I don't see any on the schedule at the moment."
The final thing discussed was the WWE Cable Network. They have the model set, and are now going to cable providers to see what the interest in it is.