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World Wrestling Federation Entertainment Reports Revenues, Net Income, Earnings Per Share Take a Fall in Second Quarter

21 Nov, 2001 By: Hive News

Stamford, Conn.-headquartered World Wrestling Federation Entertainment Inc. on Wednesday reported that, for its second fiscal quarter ended Oct. 26, 2001, total revenues were $98.2 million versus $111.9 million in the prior year's quarter. Net income was $4.8 million compared to $9.5 million last year. Earnings per common share were $0.07 versus $0.13 in the second quarter of last year. Included in last year's earnings was an after tax charge of $2.9 million, or $0.04 per share, associated with discontinued operations, the company said in a press release.

For the first six months, revenues were $188.9 million and net income was $16.8 million. Earnings per common share were $0.23 for this period compared to $0.34 last year. The results from last year included an after tax charge of $3.9 million or $0.06 per share, reflecting the effect of discontinued operations, the company said.

"We experienced some softness in our ratings, attendance, and pay-per-view buys during the quarter," said Linda E. McMahon, c.e.o. "Our results were also impacted by the continued economic downturn and the impact of the September 11th tragedy. Nevertheless, the popularity of our entertainment remains strong as we retained the distinction of being the highest-rated regularly scheduled program on all of cable.

"It is also worth noting that in the first weekend that tickets went on sale for our Wrestlemania event that will take place in Toronto, Canada on March 17, 2002, we sold approximately 52,000 tickets. This event will be the highest-grossing event in the company's history. This is a further testament to the ongoing demand, popularity, and resilience of our brand," McMahon said.

"The recently announced organizational changes that we have implemented are indicative of our prudence and responsiveness in order to accomplish our objectives in an uncertain marketplace," added McMahon.

Home video revenues decreased to $3.3 million. During thequarter, the company began its new distribution agreementwith Sony Music Video which, the company said, should significantly expand the distribution of WWFE's home video and DVD titles in retail outlets in the future.

The company has revised its full year forecast for fiscal 2002. Total revenues for the year are projected to be in the range of $395 million to $415 million. Third quarter revenues will account for slightly more than 23% of total fiscal year revenues and the fourth quarter will represent approximately 30%, the company said, reflecting the impact of Wrestlemania. Other revenue streams also will benefit from this event. Licensing revenues during the fourth quarter will account for approximately 55% of total licensing revenues due to the added revenue-generating factor of the holiday season timing.

The company has adjusted its estimates for the lower number of addressable households for its pay-per-view events.

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