Profit Halves at WWE

STAMFORD, August 2: World Wrestling Entertainment’s
second-quarter profit fell from $14.7 million last year to $7 million, despite
improved revenues of $137.5 million, as a result of a one-time impairment
charge.

Earnings in the quarter were negatively impacted by a $15.7
million impairment charge related to revised performance expectations of the
feature film The Condemned. Excluding
the impairment charge, operating income would have been $25.4 million as
compared to $21.4 million in the prior year quarter, representing a 19 percent
increase. Net income would have been $16.9 million, as compared to $14.7
million.

“We achieved a broad-based 15 percent revenue increase,
posting higher revenues across all key business lines in the current quarter,”
said CEO Linda McMahon. “In addition to the top line growth, we achieved EBITDA
of approximately $12 million, or $27.7 million excluding the film impairment.
This $27.7 million represents an 18 percent increase over the prior year
quarter.”

Television and live event revenues were boosted by WrestleMania, McMahon said, which set WWE records for both the
number of pay-per-view buys and gross ticket sales. Consumer products revenues
increased 29 percent, reflecting improvements in the home video, licensing and
magazine publishing businesses. And digital media revenues were up 30 percent.