WWE 2 Q PROFIT MORE THAN DOUBLES
  • 12/01/2005 (6:56:38 pm)
  • Press Release

Also WWE stocks today up $1.08 to $14.59…

WWE 2Q Profit More Than Doubles
STAMFORD, Conn. (AP) - World Wrestling Entertainment Inc. said Thursday that profit more than doubled in its second fiscal quarter, led by higher DVD sales.

For the three months ended Oct. 28, the producer and programmer of professional wrestling matches earned $11.7 million, or 17 cents per share, up sharply from $4.4 million, or 6 cents per share, a year ago. WWE said its latest results were boosted by $3.4 million from legal settlements.

Revenue grew 6 percent to $88.9 million from $83.9 million as a jump in sales of branded merchandise offset a drop in live event revenue. Branded merchandise revenue of $28.9 million was driven by home video sales, along with licensing and an increase in Web site orders.

WWE noted that much of the video increase came from the increased selling price of DVDs, which then boosted profit margins.

This overcame the decline in live and televised revenue to $60 million from $66.8 million. Most of this falloff came from a drop in live event sales to $12 million from $20.1 million, which the company attributed to fewer international events.

Analysts surveyed by Thomson Financial were looking for earnings of 7 cents per share on sales of $82 million. WWE shares rose 36 cents, or 2.7 percent, to $13.87 in premarket trading.

WWE stocks are up $1.08 today to $14.59...

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