- 02/13/2008 (11:41:17 pm)
- Media
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By BRIAN GARRITY
The Stamford, Conn.-based WWE said it generated $16 million in sales from its film business in 2007 including $3 million in its December quarter. Leading the way was revenue associated with "See No Evil," a 2006 film starring the wrestler Kane that was released via Lionsgate Films.
The film upswing comes as WWE yesterday reported a 23 percent gain in overall fourth-quarter revenue and a 39 percent jump in net income, led by growth in its home video and product licensing business.
However, film projects are still dragging on WWE's cash flow. The company recorded a $15.7 million asset impairment charge for another feature film, "The Condemned," starring wrestler "Stone Cold" Steve Austin that was released in 2007 - all but wiping out the bulk of what otherwise would have been a 26 percent gain in EBITDA for the full year.
While the company's film releases have been box office weaklings so far, WWE, led by CEO Linda McMahon, isn't counting out the business.
The company shook up the leadership of its film efforts last fall, tapping Michael Lake to replace Joel Simon. And it is in the midst of producing its next feature, "12 Rounds" starring wrestler John Cena, as well as a handful of direct-to-video offerings for release in 2009.
Meanwhile, the company remains on the hunt for a new distribution partner for its "Friday Night Smackdown" television franchise after The CW Network informed the WWE last week that it planned to discontinue it at the end of the current TV season.
