Revenues down at WWE26 Feb, 2003 By: Jessica Wolf
Home video revenues for World Wrestling Entertainment Inc. (WWE) increased by 3 percent to $2.7 million during the company's third fiscal quarter ended Jan. 24, up from $2.6 million in the prior-year quarter.
For the nine months ended the same day, home video revenues were up 23 percent to $10.7 million from $8.7 million for the same prior-year period, WWE reported. Unit sales were up 8 percent, with DVD accounting for 66 percent of units sold, up from 31 percent the year before.
Eight of the company's home videos ranked among the 10 bestselling home videos in Billboard Magazine's recreational sports category as of Feb. 15.
Overall, third quarter revenue dropped from $100.2 million in the prior-year quarter to $95.6 million.
Revenues were also down for the year, mainly because of low attendance at live events and fewer pay-per-view buys. The company closed its money-losing The World restaurant in New York, saying it had no short-term prospects for profitability. An affiliated store will be shuttered by April 27. the company is also recovering from a former restaurant manager's alleged embezzlement last year.
CEO Linda McMahon said the company is reallocating resources to expand WWE's global interests rather than focusing on “site-specific” projects.
“We will build shareholder value by continuing to create WWE branded products and programming that we can distribute on a worldwide basis,” McMahon said in a statement with the company's financial disclosures.