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WWE releases 3rd quarter results
By
JON WALDMAN - SLAM! Wrestling
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World Wrestling Entertainment, Inc. released its third-quarter financial
results earlier on Wednesday, with an increase in revenue as compared to last
year's quarterly statement.
The Fed brought in $82.7 million in net revenues, in comparison to $79.1
million for the third quarter for the 2003-2004 fiscal year. Operating
income increased by $300,000 ($12.4 million compared to $12.1 million),
while net income rose by $2.1 million ($10.9 million this year versus $8.8
million last year).
The rise in revenues can be attributed to a couple different factors,
including an increase in pay-per-view events. This year's third quarter
included four PPVs (three live events plus prior events), drawing a total of
1,043,000 buys, while last year's quarter only had two live events and prior
event totals, drawing 783,000 buys. The additional PPV was New Year's
Revolution (275,000 buys), which was WWE's first PPV broadcast from Puerto
Rico.
Another reason for the increase in revenue is due an increase in profit from
branded mechandise. This sector increased in revenues from $23.4 million to
$25.5 million. The increase can be heavily attributed to sales from WWE Home
Video, which rose form $3.7 million in the third quarter last year, to $4.8
million this year. Among the recordings available in the quarter was The
Rise and Fall of ECW, which has become the second-highest seller in WWE
Home Video history. WWE CEO Linda McMahon noted the strong sales of the new
recordings in a press release, and predicted future success for other WWE
media ventures.
"We continue to see the distribution of our creative content through various
emerging channels as growth opportunities," McMahon said. "This has been
demonstrated in the current quarter by the success of our Home Video
business which has only begun to monetize our extensive programming library.
We will further monetize this asset through WWE 24/7, our SVOD service which
will have its official launch shortly."
While media numbers were up, however, live event attendance continued to
show problems. Revenues from house shows, which included 77 events this
quarter, were down from $11.8 million to $11.3 million. 2003-04's third
quarter included 74 events. Average attendance also dropped from 4,100 to
4,000.
Jon Waldman has been a SLAM! staff writer since 2000.
