Toys and novelties boost WWE Q1 licensing revenue

Samantha Loveday

By Samantha Loveday

May 6th 2010 at 4:19PM
Toys and novelties boost WWE Q1 licensing revenue

Strong live events performance also helps company to sales of $138.7m for period.

World Wrestling Entertainment has reported its figures for the first quarter ending March 31st 2010.

In the consumer products division, revenues from all businesses were $30.7 million versus $33.1 million in the prior year quarter. The seven per cent decrease can be attributed to a decline in the home video business.

Licensing revenues rose slightly to $19.9 million, compared to $19.8 million in the prior year quarter, reflecting additional sales of toys and novelties, partially offset by lower video game sales.

Toys and novelties increased by $0.5 million and $0.6 million respectively, while revenues related to video games declined by $1 million in the current quarter.

The big growth for WWE, however, came from the live events division, which saw revenues increase to $26 million as compared to $18 million in the prior year quarter.

This was mainly down to the timing of Wrestlemania XXVI, which generated $6.7 million in revenue in the current quarter.

Overall, WWE reported total revenues of $138.7 million for the first quarter, compared with $107.8 million in the prior year quarter. Operating income stood at $37.3 million, while net income was $24.7 million.

Revenues from North America and outside North America increased by 28 per cent and 33 per cent respectively.

"In the first quarter, we delivered significant growth in earnings and profitability, reaching our highest operating margin in our recent history," said Vince McMahon, chairman and CEO at WWE. "Looking ahead, our faith in the future is strengthened by the ongoing power of our brands, the strength of our partnerships and our ongoing focus on operating efficiency.

"We remain confident that we can achieve our targeted earnings growth and drive greater profits."

The WWE business outlook targets average annual earnings growth of 15 to 20 per cent over the 2009-2012 period.