- 02/27/2009 (5:10:15 pm)
- Press Release
Company’s net income down nearly 37%…
Thanks to Bob for this article from Variety:
Tough economy body slams WWE
Company's net income down nearly 37%
Film and traditional TV broadcasts provided sole bright spots for WWE as all of the company's core businesses, including live events, pay-per-view broadcasts, merchandise sales and digital, took a hit during the fourth quarter.
Net income fell nearly 37% to $22 million on revenues of $125 million, which fell 5% over the same year-ago period. The numbers for all of last year were a little more resilient, pinning down $527 million in revenue, an uptick of 8%, although net income dropped 13% to $45 million.
Contributing largely to the losses for the quarter, WWE's live events revenues declined 7%, impacted mostly by foreign exchange rates; company hosted 26 events overseas during the period.
However, attendance of matches in North America also fell 3% with the average price of tickets taking a dip, as well.
Of the four pay-per-views it aired, largest audience of 319,000 tuned into "Survivor Series," which was 22,000 fewer than in 2007.
Elsewhere, sales of toys and apparel fell 11% while its online revenues were down 8% due to lower ad revenue and online merchandise sales.
WWE did enjoy a nearly $4 million boost in television rights fees from MyNetworkTV after it moved its consistent ratings generator "Friday Night SmackDown" from the CW to the Fox-owned station group last year. It earned nearly $28 million in such fees during the fourth quarter.
Another highlight was the company's recently revamped film and TV arm, WWE Studios, which took in $5 million in revenue during the fourth quarter and $25 million throughout last year, from three pics it produced and released beginning in 2006, up from $3 million and $16 million for the comparable quarter and year in 2007.
Division should further provide a boost to WWE's bottom line after it unspools the Renny Harlin-helmed actioner "12 Rounds" in March. It also co-produced the direct-to-DVD pics "Behind Enemy Lines: Colombia" and "The Marine 2" with Fox. It's spent nearly $32 million to produce those pics.
The economy forced WWE to make moves to scale back, eliminating 10% of its workforce earlier this year in an effort to shave off $20 million in overhead.
WWE's stock rose 41¢ to close at $9.73, an increase of 4%.