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Tag: Linda McMahon

  • WWE reports a fall in operationg income for Q2

    WWE reports a fall in operationg income for Q2

    MUMBAI: World Wrestling Entertainment, Inc., (WWE) has announced financial results for its second fiscal quarter ended 27 October, 2006.

    Revenues totalled $96.2 million as compared to $88.9 million in the prior year quarter and operating income was $11.7 million as compared to $18.9 million in the prior year quarter. The company reported net income of $10.4 million as compared to $11.7 million, or $0.17 per share, in the prior year quarter.

    In India WWE airs on Ten Sports.

    WWE CEO Linda McMahon says, ” The current quarter reflects the absence of all domestic cable advertising revenues under our arrangement with USA Network, which accounted for revenues of approximately $5.6 million in the prior year quarter. Our effective tax rate in the current quarter was significantly lower as a result of a beneficial settlement of a state and local tax audit. The prior year quarter also included approximately $3.4 million in positive legal settlements. We accomplished several operational objectives in the second fiscal quarter that are important for our continued development.

    “We launched Friday Night SmackDown on the new CW network, allowing us to broadcast into three million additional homes domestically. We successfully released our second feature film, The Marine in October and the results are firmly in line with our expectations. We have also positioned our home video business for long-term growth by securing a new distribution deal.”

    Revenues from WWE’s live and televised entertainment businesses were $64.3 million for the current quarter as compared to $63 million in the prior year quarter, a two per cent increase. Pay-Per-View (PPV) revenues were $18.6 million as compared to $18.8 million in the prior year quarter. There were three Pay-Per-View events produced in each quarter.

    Beginning in Q1 of the 2006 transition Period, the North American retail price of its PPV events was increased by $5 to $39.95 in order to bring the price more in line with similar live events. International buys comprised approximately 36 per cent of total buys in the current quarter as compared to 40 per cent of total buys in the prior year quarter.

    Live event revenues were $17.6 million as compared to $13.0 million in the prior year quarter, primarily due to the timing of international tours. There were 101 events, including 11 international events and 27 ECW branded events, during the current quarter. In the prior year, there were 78 events, including only 2 international events.

    International events generated approximately $4.6 million in the current quarter as compared to $1.3 million in the prior year quarter. Television rights fees revenues were $21.8 million as compared to $20.4 million in the prior year quarter. This increase is primarily due to the rights fees received from ECW telecasts.

    Television ad revenues were $1.5 million as compared to $7.7 million in the prior year quarter. This decline was due to the earlier mentioned television distribution agreement with USA Network, which became effective in October 2005.

    Due to this change, WWE no longer participates in domestic television advertising sales. Advertising revenues in the current quarter include sales of advertising on the Canadian television programmes.

  • WWE reports decline in 4Q revenue, operating income

    WWE reports decline in 4Q revenue, operating income

    MUMBAI: World Wrestling Entertainment (WWE) has announced financial results for its fourth fiscal quarter ended 30 April 2006. Revenues totaled $114.3 million as compared to $118.3 million in the prior year quarter and operating income was $15.1 million as compared to $22.5 million in the prior year quarter.

    In India, viewers can catch WWE action on Ten Sports.

    WWE reported net income of $10.6 million as compared to $16.1 million in the prior year quarter. WWE CEO Linda McMahon says, “Our fourth quarter operating results capped off a very successful year as we generated $400 million in revenues in fiscal 2006, reflecting strong performances by our home video, licensing and digital media businesses.

    “In the fourth quarter, we continued to make strategic investments in key areas such as our digital business initiative and global marketing campaigns. Our WrestleMania 22 results in the fourth quarter continue to demonstrate the power of both that event and of the overall WWE brand and their respective places in pop culture. Also, we are relaunching the ECWbrand via weekly television performances on the Sci Fi Channel and through a distinct touring group performing in smaller venues. This type of performance gives our fans a different wrestling experience. Raw, SmackDown and ECW now represent a portfolio of WWE brands for fans of all ages and interests to enjoy.”

    Revenues from live and televised entertainment businesses were $92.3 million for the current quarter as compared to $102.2 million in the prior year quarter, a decrease of 10 per cent primarily reflecting the absence of domestic cable ad revenues.

    Pay Per View (PPV) revenues were $35.4 million as compared to $34.6 million in the prior year quarter. There were four PPV events produced in the current quarter as compared to three events in the prior year quarter. International events generated approximately $13 million in the current quarter as compared to $16.0 million in the prior year quarter.

    The current quarter included a highly successful 16 event European tour as well as several events in emerging territories, including the Philippines and Thailand. Although the emerging territories yield lower revenues as compared to other international markets, WWE says that these tours, combined with its TV presence, establish our brand presence which allows it to develop the other businesses such as licensing, PPV and home video sales.