WWE suffers dip in licensing revenues for Q2

Revenues from Consumer Products businesses stood at $16.0m compared to $16.6m in the prior year quarter.
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WWE suffered a dip in its Consumer Products businesses for the second quarter ending June 30th.

Revenues for the division stood at $16.0 million, compared to $16.6 million in the prior year quarter, primarily die to the decline in the firm's licensing business.

Licensing revenues were $5.5 million as compared to $6.7 million in the prior year quarter, mainly driven by lower sales and effective pricing of its franchise video game.

Venue merchandise revenues also decreased six per cent to $6.5 million from $6.9 million, attributed to a seven per cent decline in total attendance at the company's North American events.

However, WWEShop revenues increased 33 per cent to $4.0 million, driven by a 29 per cent increase in the volume of online merchandise orders to more than 81,000 orders globally.

Overall, WWE reported a net loss of $14.5 million compared to net income of $5.2 million in the second quarter of last year.

Despite this, the firm's chairman and CEO, Vince McMahon, says that WWE's core business metrics remain strong, with WWE Network "continuing to be the single greatest opportunity to transform WWE's business model".

George Barrios, chief strategy and financial officer, added: "As we expanded WWE Network to 700,000 subscribers, our earnings performance surpassed our guidance, which targeted a net loss ranging from $15m to $18m.

"Our key metrics continued to show strength as average North American attendance increased 11 per cent, representing the fourth consecutive quarter of year over year growth. Raw and Smackdown TV ratings increased five per cent and three per cent, respectively, marking Smackdown's 7th quarter of growth among the past eight quarters.

"We identified efficiencies across WWE, which include a seven per cent reduction in staff, and improved our 2015 OIBDA outlook by $30 million. We developed plans to make WWE Network available in over 170 countries, and entered a ten-year deal that provides for the WWE Network launch as a traditional a-la-carte Pay-TV channel in Canada and renews our television licensing agreement for Raw and Smackdown.

Barrios continued: "The progress in our strategic initiatives reinforces our view that successful execution of our WWE Network strategy can generate meaningful economic returns."

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