Higher toy sales boost WWE in Q3 - Licensing.biz

Higher toy sales boost WWE in Q3

Mattel partnership continues to pay dividends for firm, as toy revenues up by $2.4m for period.
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WWE has reported its financial results for its third quarter ending September 30th.

Revenues from its consumer products businesses decreased by seven per cent to $21.4 million from $23.0 million in the prior year quarter. This can mainly be attributed to the performance of its home video business, where net revenues were $7.2 million compared to $11.2 million the previous year.

Licensing revenues, however, were boosted to $10.8 million (from $7.9 million), predominantly due to higher toy sales.

Revenues related to toys increased by approximately $2.4 million, reflecting improved performance and the strength of WWE's partnership with Mattel.

Revenues from video games decreased by $0.5 million, while magazine publishing net revenues were $2.6 million, as compared to $3.4 million in the prior year quarter.

As a business overall, WWE reported total revenues of $109.6 million (2009: $111.3m) and operating income of $20.3 million (2009: $14.5m). Net income was $14.3 million (2009: $8.9m).

"We generated earnings growth despite a decline in revenue across many of our businesses," said Vince McMahon, chairman and CEO at WWE. "We believe our ongoing talent transition and the sluggish economy were important factors in these declines. Based on our history of developing talent and creating content with broad appeal, we are confident we can address these creative challenges.

"Further, by taking advantage of our strategic opportunities, we can achieve meaningful growth."

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