WWE Releases Q1 Financials

STAMFORD: World Wrestling Entertainment posted revenues in the first quarter of $107.8 million, down from $162.6 million last year, with a net income of $10.3 million, as compared with the year-ago period’s $19.5 million.

Announcing the results, Linda McMahon, the company’s CEO, noted: “During the quarter, our core businesses performed relatively well, delivering operating income essentially flat with the prior year on an adjusted basis. Our first quarter results reflected our successful efforts to improve operating efficiency. Our work to transform the company in this way resulted in a significant reduction in operating expenses and a marked increase in profit margins. We believe the changes we have made position us to leverage the power of our global brands and to deliver even environment.”

McMahon also noted the success of the recent 25th anniversary WrestleMania, which will be included in the second-quarter results. Held April 5, it was the highest-grossing live event in WWE history, McMahon said, with 70,000 attendees and some 1 million pay-per-views.

Live and televised entertainment revenues were down 36 percent to $64,1 million, primarily as a result of the timing of WrestleMania—last year’s event brought in revenues of $5.9 million in Q1 2008. The live and televised entertainment revenues include $13.6 million from pay-per-view, $24.9 million from TV rights fees and $1.5 million from WWE 24/7 Classics on Demand.

Consumer products revenues were down 24 percent to $33.1 million, consisting of $9.2 million from home video, $19.8 million from licensing and $3.5 million from magazine publishing.

Digital media revenues were $6.9 million, reflecting a 15-percent decline. And WWE Studios recorded revenue of $3.7 million.