Licensing revenues hit in WWE's Q2 - Licensing.biz

Licensing revenues hit in WWE's Q2

$4.6m reduction in video games sales blamed for 45 per cent decline in the category.
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WWE has posted its financial results for the second quarter ending June 30th 2012.

Revenues in the firm's consumer products businesses decreased 25 per cent to $16.1 million from $21.6 million in the prior year quarter, primarily due to the decline in licensing revenue.

Notably, this stood at $6.6 million as compared to $12.0 million in the prior year quarter.

The 45 per cent decline was mainly due to a $4.6 million reduction in video games sales with one fewer release - WWE All Stars - during the period. This game was released in March 2011 and will not be refreshed in the current year.

Additionally, royalties from the sale of toys declined 12 per cent, or $0.4 million, with lower associated promotion and retail support. Although shipments of its franchise video game, WWE '12 (pictured), increased 13 per cent in the quarter to 221,000 units, shipments have declined 23 per cent year to date.

Elsewhere in consumer products, home video net revenues were $7.8 million (compared to $7.5 million in the prior year quarter) and magazine publishing net revenies were $1.3 million (2011: $1.6m).

The company as a whole reported revenues of $141.6 million (2011: $142.6m) and operating income of $19.6 million (2011: $21.0m) for the period.

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