Consumer products boost for WWE

Samantha Loveday

By Samantha Loveday

August 7th 2008 at 9:32AM
Consumer products boost for WWE

Q2 figures show 22 per cent growth over prior year quarter, across home video, licensing and publishing.

The popularity of WWE is showing no signs of waning - with the company reporting an increase in revenue of 19 per cent for the first six months of the year, with growth coming from all sectors of the business.

Revenues from consumer products in particular were $32.4 million for the second quarter ending June 30th versus $26.4 million in the prior year quarter, representing a 22 per cent increase.

Within this, home video net revenues were $18.5 million (compared to $14.8 million in the prior year quarter). Licensing revenues were $9.0 million compared to $7.7 million in the previous year quarter, primarily reflecting increases in video game related sales.

In addition, magazine publishing net revenues were $4.3 million (compared to $3.7 million) representing a 16 per cent increase. WWE Kids magazine was launched in the current quarter, a bi-monthly publication aimed at younger WWE fans from age six to 14.

In the main, WWE revenues totaled $129.7 million as compared to $137.5 million in the prior year quarter. Operating income was $12.0 million (compared to $9.7 million in the previous year quarter).

Net income was $7.0 million for the period.

Revenue increased 19 per cent for the first six months of the year. Operating income increased 29 per cent to $39.1 million, reflecting the impact of a $15.7 million film impairment charge recorded in the second quarter of 2007. Excluding this charge, operating income declined 15 per cent from the prior year.

"The company made important progress in terms of its fundamental operating objectives," said CEO Linda McMahon. "We achieved a significant increase in revenue from our international operations, continued the strong growth of our live event, licensing and home video sales and maintained improved trends in our pay-per-view business."