WWE Second Quarter Earnings & Conference Call 6.8.2010
Posted by David Damage on Monday, May 2, 2011
Under: Archive News
WWE
have released their second quarter earnings results. Overall the
results were not good, as they were below second quarter results from
last year. The main notes are:
Revenues for the second quarter
were $106.8 million with an opening income of $10.3 million and a net
income of $6.3 million. The second quarter last year included
WrestleMania, which was in the first quarter this year. When removing
WrestleMania, second quarter results last year were $106.6 million in
revenue, with $13.1 million in operating income and $10.2 million in net
income.
WWE cited the soft economy as well as "recent changes in
our talent base" as the major reasons for the disappointing
performance.
"In the second quarter, our performance fell below
management expectations as trends weakened in the latter part of the
quarter. Although we believe the continued softness in the economy
played a part in our results, recent changes in our talent base may have
also impacted key operating metrics, particularly domestic pay-per-view
buys and live event attendance," stated Vince McMahon, Chairman and
Chief Executive Officer. "In addition, our profitability was negatively
affected by the reduction in revenue from high margin businesses and by
the logistical costs related to the Icelandic volcano. We view some of
these factors as temporary and, looking ahead, we remain confident in
our ability to address these challenges by producing compelling content
and cultivating consumer demand. On a positive note, the second quarter
reflected improved results in our Home Video business and our continued
success in managing our expenses."
Revenues in North America
dropped 32% while revenues outside of America increased 3%, compared to
last year. When excluding WrestleMania from last year's second quarter,
revenues dropped 5% in North America and increased 11% outside of North
America.
* North American TV revenue was way down, from $103.5 million last year to $70.5 million this year.
Home video revenue was up, from $8.6 million last year to $11.5 million this year.
WWE.com revenues were down from $4.5 million last year to $3 million this year.
WWEShop revenues were down from $3.4 million last year to $2.4 million this year.
WWE
had their usual conference call today to discuss their second quarter
results which were released today. We already posted the numbers here on
the website. On the call were CEO Vince McMahon, CFO George Barrios,
and COO Donna Goldsmith.
Vince McMahon called the quarter "lousy" and said it was a "perfect storm" of problems,
mentioning the volcano explosion during their European tour.
He
mentioned the departures, via retirement or injury, or Shawn Michaels,
Batista, The Undertaker, Triple H, Randy Orton, and CM Punk, which
impacted their business. He said he has never had a situation with so
many major names retiring or getting injured at the same time.
Vince was asked about new talent and praised the Nexus group. He said that the "new
talent infusion" plus the returns of The Undertaker and Triple H will improve WWE's talent lineup.
Vince
said they are looking at Summerslam as "the kickoff" to reversing the
negative trends and getting back on track in terms of PPV buys.
Vince said he wasn't sure if the increased PPV price or the talent situation was causing
PPV buy drops.
Vince said WWE plans to go to cable systems at the beginning of 2011 to start giving
presentations on the planned WWE Network.
In : Archive News