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WWE Q2 Home Entertainment Profit Declines 10%

1 Aug, 2017 By: Erik Gruenwedel

World Wrestling Entertainment reported second-quarter home entertainment pre-tax income of $900,000, down 10% from operating income of $1 million during the previous-year period. Revenue dipped about 3% to $3 million, from $3.1 million a year ago.

Through the first six months of the fiscal year, consumers are buying fewer wrestling DVDs. Revenue topped $5.4 million, compared with $6.4 million during the previous-year period.

Meanwhile, digital media, which includes subscription video-on-demand, increased revenue nearly 25% to $8.1 million, from $6.5 million. Adjusted operating income reached $1.5 million, compared to income of $200,000 a year ago.

The company continued to increase the global subscriber base of WWE Network, which had 1.57 million total paid subscribers (1.16 million U.S. paid subscribers and 0.41 million international paid subscribers) at the end of the quarter, which represented a 4% increase from June 30, 2016.

“We continued to grow WWE Network’s subscriber base, and generated results that were essentially in line with our guidance. As we continue to drive WWE’s digital and direct-to-consumer transformation, we remain on track to achieve our 2017 financial objectives with record revenue, record [pre-tax earnings], and record subscriber levels,” CFO George Barrios said in a statement.

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