Licensing takes a hit for WWE in Q3

Samantha Loveday

By Samantha Loveday

November 2nd 2012 at 10:40AM
Licensing takes a hit for WWE in Q3

21 per cent decline in sector revenue due to lower sales of video games; toy sales up however.

WWE has revealed that revenues for its consumer products businesses decreased by 20 per cent in Q3.

The dip to $15.8 million from $19.8 million in the prior year quarter can mainly be attributed to a decline in licensing revenue, which dropped by 21 per cent for the period to $7.1 million (2011: $9.0 million).

Royalties earned from the sale of video games declined by $1.2 million primarily from one fewer release - WWE All Stars - in the period. Shipments of franchise game WWE '12 also declined five per cent in the quarter to 127,000 units, resulting in a 22 per cent decline year to date.

However, royalties from the sale of toys increased 16 per cent. This reflects the introduction of Brawlin' Buddies from Mattel.

Elsewhere in consumer products, home video net revenues for Q3 stood at $6.4 million, a 23 per cent decline on 2011; while magazine publishing net revenues were $1.6 million (2011: $1.9 million).

WWE as a whole reported revenues of $104.2 million for the quarter ending September 30th. This is compared to $108.5 million in the prior year quarter.

"While the quarter had an anticipated decline in earnings, based on our results to date, we are raising our financial forecast for the full year," said George Barrios, chief financial officer at WWE. "We expect that our 2012 earnings will be 15 per cent to 25 per cent above our 2011 net income and ten per cent to 15 per cent above our 2011 EBITDA resukts, both on an 'as reported' basis."

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