By James Caldwell, Torch assistant editor

WWE succeeded in their first quarter 2009 goal to cut costs in order to brace for lower-than-expected total revenue in the quarter. WWE's profit margin increased to 48 percent compared to a comparable rate of 42 percent in the prior year first quarter.

In January 2009, WWE announced significant layoffs to its corporate staff that resulted in $2.1 million in fewer Corporate-related Expenses in the quarter. The savings would have been more significant, but WWE reported $2.2 million in "restructuring costs" that resulted from the layoff.

WWE CEO Linda McMahon says the restructuring in the quarter will set up the company to rebound financially when their business turns around.

"Our first quarter results reflected our successful efforts to improve operating efficiency," McMahon said in WWE's earnings press release. "Our work to transform the Company in this way resulted in a significant reduction in operating expenses and a marked increase in profit margins."

McMahon added that WWE believes they will be able to "leverage the brand name" to increase revenue in future reporting periods once the global market turns around.

Following is a chart of WWE's profit margin for the past nine quarters, which reflects how well WWE is able to generate revenue while managing the cost required to generate the revenue.

Profit Margin (Total Revenues - Cost of Producing Revenues)
20071Q - 46 percent
20072Q - 27 percent (WM23 quarter - WWE goes nuts spending money advertising PPV)
20073Q - 41 percent
20074Q - 42 percent
20081Q - 39 percent (42 percent adjusted for non-WrestleMania)
20082Q - 41 percent
20083Q - 39 percent
20084Q - 45 percent
20091Q - 48 percent

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