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By James Caldwell, PWTorch assistant editor
WWE reported record quarterly revenue in the Second Quarter 2016, but costs ate into profits.
WWE released a full break down of why corporate and business-related costs increased by $11.0 million (14 percent) in the first-half of 2016 compared to 2015.
The big line-item increase was legal, accounting, and other professional fees, which WWE noted is “related to ongoing litigation,” such as the ongoing concussion suit that ramped up in the first half of 2016. This accounted for 31 percent of the year-to-year increase.
WWE also disclosed an increase is expenses related to “talent related costs and professional fees within our Business Support departments in support of company-wide strategic initiatives.” This segment is most closely tied to added WrestleMania costs and accounted for 42 percent of the increase.
There was also a 16 percent increase for staff-related costs and an 11 percent increase for management incentive compensation.
Overall, the cost of doing business increased from 55 percent in the first-half of 2015 to 58 percent in 2016.
This meant Corporate expenses decreased from 45 percent to 42 percent, mainly due to the increase in business costs.