June 13, 2003

The WWE is reporting a loss in its fiscal fourth quarter amid a 20 per cent drop in revenue and the costs associated with closing its Times Square restaurant in New York City. The WWE announced the net loss as being $4.1 million, or six cents a share, for the quarter.

The latest results include an $8.9 million cost related to the WWE closing its The World restaurant in New York City. The WWE reported a loss of $4.1 million, or 6 cents per share, in the fiscal fourth quarter ended April 30, compared with a profit of $16.0 million, or 22 cents per diluted share, in the year-ago quarter. Revenues in the quarter fell to $105.9 million from $131.6 million a year earlier.

In a prepared statement, WWE Chief Executive Linda McMahon blamed a weak economy and the abundance of reality-based programming for the downward spiral. The WWE has been struggling with declining television ratings, less people attending live events and fewer people purchasing their pay-per-views.

The revenue breakdown is as follows:

Live events:

Revenues of $19.0 million this quarter of 2003 versus $27.9 million for this quarter in 2002.

74 events (5 international) this year as opposed to 78 (3 international) last year.

Average attendance is 6,600 this year as opposed to 8,900 last year.

Pay Per View:

Revenues of $31.8 million this year as opposed to $40.6 million last year.

Lower buys than last year.

TV rights increased from $1.4 million to $15.6 million due to increased international rights fees.

TV advertising:

Revenues of $19.0 million this year as opposed to $21.9 million last year.

Raw average rating is 3.8 this year. It was 4.7 last year. Smackdown! averages 3.2 this year. It was 3.9 last year.

For 2004, WWE expects revenue between $325 million and $ 350 million, with between $260 million and $275 million coming from live and televised events.

At the close of the New York Stock Exchange yesterday shares of World Wrestling were unchanged at $9.60. WWE stock began trading on the New York Stock Exchange on October 25th, 2000. It opened at $15.00 U.S. a share.

-- SLAM! News Wires