WWE hit by consumer products slow down

Samantha Loveday

By Samantha Loveday

February 28th 2012 at 9:54AM
WWE hit by consumer products slow down

Revenues for the sector decreased by 15 per cent to $18.7m in latest set of figures.

WWE has revealed its financial results for the fourth quarter and full year ending December 31st 2011.

Revenues from the consumer products businesses decreased 15 per cent to $18.7 million from $21.9 million in the prior year quarter, primarily due to the performance of the firm's licensing and publishing businesses.

Licensing revenues were $9.5 million as compared to $12.3 million in the prior year quarter, as lower sales of toy, collectable and novelty products more than offset an increase in video game sales.

Revenues related to toys declined 15 per cent - or $1.0 million - reflecting, in part, a challenging retail environment for certain toy categories. Revenues from WWE's collectable products declined due to a tough comparison to a successful product launch in the prior year.

Revenue from video games, meanwhile, increased by $0.4 million, led by sales of the WWE All Stars video game.

Magazine publishing net revenues were also down, standing at $2.0 million compared to $3.1 million in the prior year quarter.

However, home entertainment net revenues were $6.5 million as compared to $5.8 million in the prior year quarter. This represents a 12 per cent increase that was primarily due to an adjustment in the prior year quarter.

Elsewhere, live event revenues were $26.9 million as compared to $26.6 million in the prior year quarter; while revenues from WWE's digital media businesses were $8.9 million, as compared to $10.3 million in the prior year.

Overall for WWE, revenues totaled $112.9 million as compared to $122.5 million, and operating loss was $13.1 million as compared to operating income of $14.4 million in the prior year quarter.