{"id":1941,"date":"2015-10-29T10:26:05","date_gmt":"2015-10-29T15:26:05","guid":{"rendered":"http:\/\/www.pwtorch.com\/?p=1941"},"modified":"2015-10-30T03:38:47","modified_gmt":"2015-10-30T08:38:47","slug":"wwe-q3-full-break-down-of-revenue-profit-plus-top-10-revenue-drivers","status":"publish","type":"post","link":"https:\/\/www.pwtorch.com\/site\/2015\/10\/29\/wwe-q3-full-break-down-of-revenue-profit-plus-top-10-revenue-drivers\/","title":{"rendered":"WWE Q3 &#8211; Full Break Down of Revenue &#038; Profit, plus Top 10 Revenue Drivers"},"content":{"rendered":"<div id=\"pwtor-347056120\" class=\"pwtor-before-content pwtor-entity-placement\"><hr \/><b>SPOTLIGHTED PODCAST ALERT (YOUR ARTICLE BEGINS A FEW INCHES DOWN)... <\/b>\r\n\r\n<iframe src=\"https:\/\/widget.spreaker.com\/player?show_id=3076978&theme=light&playlist=false&playlist-continuous=false&autoplay=false&live-autoplay=false&chapters-image=true&episode_image_position=right&hide-logo=false&hide-likes=false&hide-comments=false&hide-sharing=false&hide-download=true\" width=\"100%\" height=\"140px\" frameborder=\"0\"><\/iframe>\r\n<hr \/><\/div><p><span style=\"text-decoration: underline;\"><strong>WWE Third Quarter 2015 Revenue &amp; Profit Break Down<\/strong><\/span><\/p>\n<p>&#8211; Total quarterly revenue: $166.2 million (vs. $120.2 million in Q3-2014).<\/p>\n<p>The cost of revenue was $98.270 million, up from $78.417 million. However, WWE&#8217;s direct profit margin was better at $67.93 million vs. $41.76 million in Q3-2014.<\/p>\n<p>&#8211; Total segment\u00a0profit: $23.4 million (vs. $2.7 million in Q3-2014).<\/p>\n<p>&#8211; Operating Income: $17.9 million (vs. $5.0 million loss in Q3-2014).<\/p>\n<p><strong>(1) Media Division<\/strong><\/p>\n<p><strong>Total Revenue:<\/strong> $114.9 million, up 49 percent from $76.9 million in Q3-2014.<\/p>\n<p><strong>Total Profit:\u00a0<\/strong>$48.8 million, up 86 percent from $26.3 million in Q3-2014.<\/p><div id=\"pwtor-1655838414\" class=\"pwtor-content pwtor-entity-placement\"><div align=\"center\" data-freestar-ad=\"__336x280 __336x280\" id=\"pwtorchcom_test_300x250\">\r\n  <script data-cfasync=\"false\" type=\"text\/javascript\">\r\n    freestar.config.enabled_slots.push({ placementName: \"pwtorchcom_test_300x250\", slotId: \"pwtorchcom_test_300x250\" });\r\n  <\/script>\r\n<\/div><\/div>\n<p>&#8211; <strong>TV Rights revenue<\/strong> was $65.2 million, up 55 percent from $42.2 million in Q3-2014.<\/p>\n<p>Profit was $26.6 million, up 29 percent from $20.7 million in Q3-2014.<\/p>\n<p>The big leap in TV Revenue offset increased production costs. WWE disclosed in their <a href=\"http:\/\/ir.corporate.wwe.com\/Cache\/c31655345.html\" target=\"_blank\">10-Q filing with the SEC<\/a> that WWE &#8220;spent $26.6 million to produce additional content for television, including Total Divas Season 4 and Tough Enough, and various programs for the WWE Network, compared to $14.8 million in the prior year period.&#8221;<\/p>\n<p>Going forward to the fourth quarter, WWE said they anticipate spending &#8220;approximately $5.0-15.0 million to produce additional content during the remainder of the current year.&#8221;<\/p>\n<p>&#8211; <strong>WWE Network revenue<\/strong> was $40.9 million, up from $26.1 million in Q3-2014 during the Network ramp-up period.<\/p>\n<p>Within the segment is $4.5 million from PPVs, up from $3.7 million in Q3-2014. (Yes, this year&#8217;s third quarter PPV segment outdrew last year&#8217;s.)<\/p>\n<p>However, WWE received less revenue per buy &#8211; $12.65 per buy in Q3-2015 vs. $12.83 per buy in Q3-2014, indicating more international buys in the mix.<\/p>\n<p>Network profit was $17.7 million, up 670 percent from $2.3 million in Q3-2014.<\/p><div id=\"pwtor-2355757617\" class=\"pwtor-content-1 pwtor-entity-placement\"><!-- Tag ID: pwtorchcom_test_300x600 -->\r\n<div align=\"center\" data-freestar-ad=\"__336x280 __300x600\" id=\"pwtorchcom_test_300x600\">\r\n  <script data-cfasync=\"false\" type=\"text\/javascript\">\r\n    freestar.config.enabled_slots.push({ placementName: \"pwtorchcom_test_300x600\", slotId: \"pwtorchcom_test_300x600\" });\r\n  <\/script>\r\n<\/div><\/div>\n<p>Financial executive George Barrios said during Thursday&#8217;s conference call that the dramatic shift was due to (a) the\u00a0comparability to\u00a0last year during the Network ramp-up period and (b) the current year operations, where WWE achieved &#8220;operating efficiencies,&#8221; including streamlining their customer service.<\/p>\n<p>WWE has also rolled in PPV broadcast-related expenses that were greater last year than this year after going through the Network transition.<\/p>\n<p>&#8211; <strong>Home Entertainment revenue<\/strong> was $3.0 million, down 17 percent from $3.6 million in Q3-2014. WWE said\u00a0the decline was &#8220;primarily due to lower shipments and sell-through of DVD\/Blu-ray titles attributable, in part, to a broader decline in the home entertainment industry.&#8221;<\/p>\n<p>WWE disclosed that 368,000 units were shipped in the quarter, down 14 percent from 429,000 in Q3-2014.<\/p>\n<p>Profit was $1.3 million, unchanged from Q3-2014.<\/p>\n<p>&#8211; <strong>Digital Media revenue<\/strong> was $5.8 million, up from $5.0 million in Q3-2014 mainly due to &#8220;higher advertising revenue.&#8221; This segment grew to the #6 revenue-driver in the quarter, up from #8 in Q3-2014.<\/p>\n<p>Profit was $3.2 million, up 60 percent from $2.0 million in Q3-2014.<\/p>\n<p><strong>(2) Live Events Division<\/strong><\/p>\n<p><strong>Total Revenue:\u00a0<\/strong>$26.1 million, up 20 percent from $21.8 million in Q3-2014.<\/p>\n<p><strong>Total\u00a0Profit:<\/strong>\u00a0$6.4 million, up 64 percent from $3.9 million in Q3-2014.<\/p>\n<p>&#8211;\u00a0North American live event revenue was $21.1 million, up 22 percent from $17.3 million in the prior year quarter. This was mainly due to a 10 percent increase in the\u00a0average\u00a0ticket price to $48.98 compared to $44.60 in Q3-2014.\u00a0Average attendance of 5,100 was essentially unchanged.<\/p>\n<p>&#8211;\u00a0International live event revenue was $4.5 million, up slightly from $4.3 million in Q3-2014.\u00a0Attendance increased to an average of 8,900, mainly due to tours in Asia, up from 7,700 for int&#8217;l events in Q3-2014.<\/p>\n<p>This slightly made up for a dip in average ticket price of $84.73 compared to $92.89 in Q3-2014. Both quarters included six international events.<\/p>\n<p><strong>(3) Consumer Products Division<\/strong><\/p>\n<p><strong>Total Revenue:\u00a0<\/strong>$22.4 million, up 21 percent from $18.5 million in Q3-2014.<\/p>\n<p><strong>Total Profit:<\/strong>\u00a0$9.9 million, up 21 percent from $8.2 million in Q3-2014.<\/p>\n<p>&#8211; <strong>Licensing revenue<\/strong> was $11.5 million, up 15 percent from $10.0 million in Q3-2014. This was mainly due to increased digital downloads of App\/mobile games.<\/p>\n<p>Profit was $7.1 million, up 20 percent from $5.9 million in Q3-2014.<\/p>\n<p>&#8211; <strong>Venue Merchandise revenue<\/strong> was $4.9 million, up 17 percent from $4.2 million in Q3-2014.<\/p>\n<p>Included was increased spending by person to $10.47\/head, up eight percent from $9.69\/head in Q3-2014.<\/p>\n<p>Profit was $1.7 million, essentially even with $1.6 million in Q3-2014.<\/p>\n<p>&#8211; <strong>WWE Shop revenue<\/strong> was $6.0 million, up 40 percent from $4.3 million in Q3-2014. This was due to an increase in online merchandise orders. However, average revenue per order declined to $44.47.<\/p>\n<p>Profit increased to $1.1 million from $0.7 last year, reflecting a positive trend in creating more orders, even if customers are not spending as much.<\/p>\n<p><strong>(4) WWE Studios<\/strong><\/p>\n<p><strong>&#8211; Total Revenue:\u00a0<\/strong>$1.7 million, down slightly from $1.9 million in Q3-2014.<\/p>\n<p>&#8211; <strong>Total Profit:<\/strong> WWE recorded an operating loss of $0.9 million, more than a $0.4 million loss in Q3-2014.<\/p>\n<p>&#8211; WWE disclosed in their 10-Q filing with SEC that as of\u00a0September\u00a030, the company had $27.8 million\u00a0feature film production assets. Of the total, $13.5 million was for\u00a0films in-release, and the remaining $14.3 million\u00a0was for films that are completed, pending release, in production, or developmental projects.<\/p>\n<p>&#8211; WWE also disclosed that WWE Studios spent\u00a0spent $4.3 million on feature film production activities, compared to $15.3 million in the prior year quarter. WWE expects to spend $3.0-8.0 million on feature film production activities during the remainder of 2015.<\/p>\n<p><strong>(5) Corporate &amp; Other<\/strong><\/p>\n<p>&#8211; <strong>Total Revenue:<\/strong> $1.1 million, even with $1.1 million in Q3-2014.<\/p>\n<p>WWE recorded $40.8 million in expenses, up $5.5 million (16 percent) from $35.3 million in Q3-2014.<\/p>\n<p>During WWE&#8217;s conference call, George Barrios attributed the increased expenses to paying executives more money for reaching performance goals and increased legal fees.<\/p>\n<p>In WWE&#8217;s 10-Q filing, WWE disclosed $6.3 million in management incentive compensation, up 125 percent from $2.8 million in Q3-2014.<\/p>\n<p>Also, legal &amp; accounting &amp; professional\u00a0services increased to $6.0 million from $4.9 million.<\/p>\n<p>The only expense that declined from Q3-2014 was &#8220;advertising, marketing, and promotion.&#8221; WWE spent $1.4 million in this area in Q3-2015, compared to $2.1 million in Q3-2014.<\/p>\n<p><span style=\"text-decoration: underline;\"><strong>WWE Revenue Break Down By Segment<\/strong><\/span><\/p>\n<p>(1) TV Rights &#8211; $65.2 million (39.2% of total revenue)<br \/>\n(2) Network &#8211; $40.9 million (24.6% of total)<br \/>\n(3) Live Events &#8211; $26.1 million (15.7% of total)<br \/>\n*** Top 3 make up 80 percent of the total ***<br \/>\n(4) Licensing &#8211; $11.5 million (6.9% of total)<br \/>\n(5) WWE Shop &#8211; $6.0 million (3.6% of total)<br \/>\n(6) Digital Media &#8211; $5.8 million (3.5% of total)<br \/>\n(7) Venue Merch &#8211; $4.9 million (2.9% of total)<br \/>\n(8) Home DVDs\u00a0&#8211; $3.0 million (1.8% of total)<br \/>\n(9) WWE Studios &#8211; $1.7 million (1.0% of total)<br \/>\n(10) Corporate &amp; Other &#8211; $1.1 million (0.7% of total)<\/p>\n<p><a href=\"http:\/\/vip.pwtorch.com\/wp-content\/uploads\/2015\/10\/WWEQ3RevDrivers.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2009\" src=\"http:\/\/vip.pwtorch.com\/wp-content\/uploads\/2015\/10\/WWEQ3RevDrivers-300x156.png\" alt=\"WWEQ3RevenueDrivers\" width=\"478\" height=\"249\" \/><\/a><\/p>\n<div class=\"pwtor-end-article-groups pwtor-entity-placement\" id=\"pwtor-3816421437\"><div id=\"pwtor-2474257400\"><div align=\"center\" data-freestar-ad=\"__336x280\" id=\"pwtorchcom_medrec_3\">\r\n  <script data-cfasync=\"false\" type=\"text\/javascript\">\r\n    freestar.config.enabled_slots.push({ placementName: \"pwtorchcom_medrec_3\", slotId: \"pwtorchcom_medrec_3\" });\r\n  <\/script>\r\n<\/div>\r\n\r\nTHANK YOU FOR VISITING<\/div><\/div>","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>WWE Third Quarter 2015 Revenue &amp; Profit Break Down &#8211; Total quarterly revenue: $166.2 million (vs. $120.2 million in Q3-2014). The cost of revenue was $98.270 million, up from $78.417 million. However, WWE&#8217;s direct profit <a class=\"mh-excerpt-more\" href=\"https:\/\/www.pwtorch.com\/site\/2015\/10\/29\/wwe-q3-full-break-down-of-revenue-profit-plus-top-10-revenue-drivers\/\" title=\"WWE Q3 &#8211; Full Break Down of Revenue &#038; Profit, plus Top 10 Revenue Drivers\">[&#8230;]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":1239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[71,696],"class_list":["post-1941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news_wwe","tag-wwe","tag-wwe-q3-2015"],"jetpack_featured_media_url":"https:\/\/www.pwtorch.com\/site\/wp-content\/uploads\/2015\/10\/WWELogo_3x2.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/posts\/1941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/comments?post=1941"}],"version-history":[{"count":4,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/posts\/1941\/revisions"}],"predecessor-version":[{"id":2059,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/posts\/1941\/revisions\/2059"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/media\/1239"}],"wp:attachment":[{"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/media?parent=1941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/categories?post=1941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/tags?post=1941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}