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WWE News: Financials through first-half of 2012 - WM28 boosts Total Revenue, international business sagging, profitability

Aug 2, 2012 - 9:33:10 AM
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By James Caldwell, PWTorch assistant editor

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In addition to reporting Second Quarter 2012 financials, WWE reported business from the first-half of 2012, which shows improvements in Total Revenue and profitability compared to the first-half of 2011. However, international business is sagging compared to last year.

Total Revenue through the first six months of 2012 was $264.7 million, as compared to $262.5 million in the prior year period. WWE says the increase was primarily driven by the performance of WrestleMania and the overall PPV business category.

Net Income through the first six months was $27.3 million, as compared to $22.9 million in the prior year period. This is mainly reflected in WWE recording an impairment loss of $6.1 million in Q2-2011 due to the performance of their films division. WWE reported that an adjustment for comparability in both Q2-2012 and Q2-2011 reveals "Adjusted Net Income of $25.9 million...was slightly below Adjusted Net income of $26.9 million...in the prior year period."

-- Regionally, WWE noted that Revenue from North American sources increased 3.0 percent through the first-half of 2012 (mainly due to WM28), while Revenue from outside North America decreased 5 percent through the first-half of 2012.

The most notable international decline was in Latin America, where WWE recorded $7.4 million through the first six months of 2012, as compared to $10.2 through the same period in 2011.

-- The four main Revenue categories (Live & TV, Consumer Products, Digital Media, and WWE Studios) were a mixed bag through the first-half of 2012, but showed a slight overall increase through the first-half of 2012 due to WM28.

Notably, Live & TV Revenue was $192.8 million compared to $180.9 million through six months in 2011, an increase of 6.6 percent. The other increase was Digital Media, which was mainly due to the YouTube agreement. Digital Media increased to $14.9 million from $12.3 million, an improvement of 21.1 percent.

The down segments included Consumer Products, which declined $4.8 million (8.5 percent) due to the absence of a second WWE video game and a downturn in international licensing. The other downturn was WWE Studios, which only recorded $5.4 million through the first-half of 2012, as compared to $12.9 million during the first six months of 2012.

- Within the Live & TV Revenue segment, WWE recorded increases in each category except Venue Merchandise, which was down slightly to $0.3 million.

The biggest leap was in PPV Revenue through the first six months of 2012. The segment generated $54.3 million, up 13.3 percent from $47.9 million through the first-half of 2011. Additionally, Live Events increased $2.8 million (5.1%) and TV Rights increased $1.3 million (2.0 percent),

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


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