WWE released its second quarter earnings results today. Overall the results were not good, as they were below analysts expectations and last year’s Q2 results. The main points:
* 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.
