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WWE News: Other Q2-2012 Business Results - TV Revenue, DVD sales, YouTube agreement, WWE Studios, more

Aug 2, 2012 - 9:18:52 AM
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By James Caldwell, PWTorch assistant editor

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The following is a break down of additional WWE business segments in Second Quarter 2012. (See additional reports on PPV Business and Live Events Business in the WWE News section.)

-- WWE's TV Rights Fee Revenue was $32.4 million, as compared to $32.0 million in the prior year second quarter. WWE noted the flat revenue was due to improved terms on their existing contracts offset by an absence of revenue from WWE Superstars, which previously aired on WGN.

The TV Rights category will go up in future quarters with WWE launching a third hour of Raw in Q3-2012 and launching "WWE Main Event" on Ion Television in Q4-2012.

-- WWE took a hit in Licensing Revenues, recording $6.6 million compared to $12.0 million prior year quarter. However, WWE says this is mainly attributed to a $4.6 million decline in video game sales due to an additional video game, WWE All-Stars, in 2011.

-- Home Video Revenue was essentially flat at $7.8 million, as compared to $7.5 million in Q2-2011. The mix was an increase in guaranteed money from international distribution, a decline in overall units shipped and average price per unit to $12.16, and an increase in revenue from prior-period releases. WWE did not identify the prior-period DVDs, but WWE showed in the monthly business reports on their Corporate website that The Rock and Stone Cold Steve Austin's prior-period DVDs continued to sell during the Second Quarter.

-- WWE did not give a specific amount of revenue collected from their new YouTube distribution agreement, but it's in the $1.0-1.4 million range. WWE noted WWE.com Revenue was $4.8 million, as compared to $3.4 million in the prior year quarter, "primarily due to increased rights fees associated with the licensing of original short-form content to YouTube."

Related to WWEShop, revenue increased $0.2 million, the number of orders increased by 7.0 percent, and the average order increased 4.0 percent to $48.70. WWE said "effective merchandising and the absence of deep discounts contributed to the change in both orders and revenue per order."

-- Affecting the comparability of the Total Revenue for the quarter was WWE Studios, which generated $0.6 million in Q2-2012, as compared to $4.3 million in the prior year quarter. WWE noted there were no new movie releases during the Second Quarter, as compared to the release of "That's What I Am" in 2011.

Link: WWE's quarterly report can be read at this link on Finance.Yahoo.com .


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