WWE issued its First Quarter 2011 Financial Results on Thursday morning .. You can check out WWE’s official press release by clicking here.
The two main factors that make an apples-to-apples comparison between Q1 2011 and Q1 2010 are that WrestleMania was not included in the Q1 earnings report this year (as it took place in April) and there was a $2.8 million “film impairment charge” which reduced the overall net income of the quarter.
WWE Chariman Vince McMahon had this to say about the state of WWE:
“Looking ahead, we are optimistic about our longer-term opportunities to leverage our strength as the ‘New WWE’. We are pleased with the strong performance of WrestleMania, which is expected to deliver a 30% increase in domestic pay-per-view buys and reach more than one million buys globally. Further, the successful launch of our new program, Tough Enough showcases the power of our branded programming. We believe the recent adjustment in our dividend will enhance our flexibility to create and monetize new content, to distribute that content on a variety of existing and emerging media platforms and to execute our ‘New WWE’ initiative.”
Here are some additional notes that provide more insight as to “the story behind the numbers” –
– WrestleMania 27 is not included in these first quarter results as it happened on April 3rd, during the second quarter. WWE had WrestleMania 26 included in their first quarter results from last year.
– That said, pay-per-view revenues for Q1 2011 were $13.5 million, down from the $32.4 million from Q1 2010. With WrestleMania 27 not included in the first quarter’s numbers, there were only two WWE pay-per-views in the quarter. This year’s Royal Rumble did 446,000 buys and this year’s Elimination Chamber did 199,000 buys.
– Total net revenues from WWE Studios, live/TV events, consumer products and digital media for the first quarter in 2011 were $119.9 million, down from $138.7 million in the first quarter of 2010.
– Revenue from WWE Classics On Demand for the first quarter were $1.1 million, down from $1.3 million in 2010’s first quarter.
– Home video net revenues were $8.1 million, up from $7.6 million in 2010. Licensing revenues were $23.9 million, up from $19.9 million for the same period in 2010. The relationship with Mattel is paying off as revenue from toys increased by $3 million. Video game revenue is up around $2.2 million.
– WWE.com revenues were $2.7 million for the first quarter of this year, down from $3.4 million in the previous year’s first quarter. WWE blames this on a decline in pay-per-view webcast and wireless revenues. WWE’s shop website were $3.4 million for this first quarter, up from $3 million for 2010’s first quarter. Numbers of orders for the first quarter have increased to 83,000 with an average revenue of $40.59 per order.
– WWE Studios brought in $8.6 million for this year’s first quarter – up from $3.4 million in 2010. WWE attributes the growth in revenue to The Chaperone with Triple H. It was also noted that their financial statements reflect a loss of $1.5 million related to The Chaperone’s advertising costs, among other things.