Thursday, 5 August 2010

WWE Announces 2010 Q2 Income; falls of Performance Below Expectations

WWE announced financial results for the second quarter of 2010 (ending June 30, 2010) today. Revenues totaled $106.8 million, with an operating income of $10.3 million and net income of $6.3 million ($0.08 per share). Comparability to 2009 is impacted by the fact Wrestlemania was in quarter one of 2010 while it was in quarter two in 2009. Excluding the numbers brought in from Wrestlemania in quarter two of 2009, revenues were $106.6 million, operating income was $13.1 million and net income was $10.2 million ($0.14 per share) for the year prior.

 "In the second quarter, our performance fell below management expectations as trends weakened in the latter part of the quarter. Although we believe the continued softness in the economy played a part in our results, recent changes in our talent base may have also impacted key operating metrics, particularly domestic pay-per-view buys and live event attendance," stated Vince McMahon. "In addition, our profitability was negatively affected by the reduction in revenue from high margin businesses and by the logistical costs related to the Icelandic volcano. We view some of these factors as temporary and, looking ahead, we remain confident in our ability to address these challenges by producing compelling content and cultivating consumer demand. On a positive note, the second quarter reflected improved results in our Home Video business and our continued success in managing our expenses."

Click here for a full report of WWE's 2010 quarter two earnings

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