WWE Announces Fourth Quarter Financial Results
While WWE’s 2013 fourth quarter revenue was up, overall they made a loss compared to the previous year due to WWE network costs. Here is the press release:
STAMFORD, Conn., Feb 20, 2014 (BUSINESS WIRE) — WWE today announced financial results for its fourth quarter ended December 31, 2013. Revenues totaled $118.4 million as compared to $115.1 million in the prior year quarter. Operating loss was $12.2 million as compared to income of $2.6 million in the prior year quarter. Net loss was $7.9 million, or $0.10 per share, as compared to income of $0.6 million, or $0.01 per share, in the prior year quarter. OIBDA in the fourth quarter 2013 decreased to a $5.6 million loss from income of $8.5 million in the prior year quarter.
The decline in OIBDA and Operating income was primarily attributable to increased investment in staffing, talent and marketing to support our strategic content initiatives, including the launch of WWE Network. Lower sales of new DVD releases and a corresponding shift in product mix to lower priced catalog titles, as well as compressed television production margins that derived from changes in the mix of programming also contributed to the year-over-year decline.
“During the past year, we laid the foundation for future growth and enhanced our brand strength,” stated Vince McMahon, Chairman and Chief Executive Officer. “We have now announced the renewal of our television distribution agreement in the U.K., are continuing the negotiations regarding our domestic content, and are poised to launch our global WWE Network in the next few days. With preparations for WrestleMania 30 fully underway, we look forward to celebrating our enduring legacy and ushering in a new era as we blaze new trails in the media industry.”
“As we prepared to transform our business, we invested in content production and talent. Although our earnings declined in 2013, our performance was in-line with our guidance, which targeted a range of OIBDA results, excluding film impairments, of $40 million to $50 million,” added George Barrios, Chief Strategy & Financial Officer. “Regarding our domestic TV licensing agreements, we are now engaged with potential partners after exiting our exclusive negotiating period with NBCU. Based on our analysis of the value of comparable programs and our extensive research regarding consumer interest in WWE Network, we continue to believe that we can double or triple our 2012 OIBDA results of $63 million by 2015.”
Comparability of Results
For the full year 2013, OIBDA results included $11.7 million in film impairment charges primarily related to the Company’s 2010-2012 film release slate, and an approximate $3.4 million positive impact from the transition of the Company’s video game business to a new licensee in 2013. For the full year ended 2012, OIBDA results included $1.2 million in film impairment charges, and net income included a $4.1 million benefit due to the recognition of previously unrecognized tax benefits. For the fourth quarter 2012, OIBDA results included a $0.5 million in film impairment charges. In order to facilitate an analysis of financial results on a comparable basis, where noted, fourth quarter and full year results have been adjusted to exclude these items. (See Schedule of Adjustments in Supplemental Information).
Three Months Ended December 31, 2013 – Results by Region and Business Segment
Revenues of $118.4 million increased 3% from the prior year quarter based on growth in international markets. Revenues from outside North America grew 12%, or $3.4 million, driven by the impact of scheduling three additional events in international markets, stronger performance of our live event tours, and contractual increases in international television agreements. These factors more than offset lower sales of licensed consumer products. North American revenues were essentially unchanged from the prior year quarter as revenue from the release of Christmas Bounty, a made-for TV movie, and the timing impact of an additional pay-per-view event during the quarter were offset by lower home entertainment sales and the impact to television rights from one less episode of Raw.
Will The WWE Network Hurt Wrestlers’ Pay?
When asked whether the WWE Network would harm some wrestlers’ pay, Jim Ross replied:
I’d suggest that they worry about more of the things that they can control and that’s their in ring performances and how they grow as a professional. Mid card and Prelim wrestlers NEVER made big money on PPV’s but had good years by staying healthy and being booked and working steady. I can’t see WWE not paying their talents fairly. Remember, most issues with wrestlers are about the two C’s, Cash and Creative. It’s always been that way and likely always will.
You can read more JR Q&As at JRSBARBQ.com
Darren Young Joins LBGT Gaming Community
WWE star Darren Young has joined GaymerX2, a LBGT gaming community:
PRO WRESTLER SUPPORTS THE LBGT GAMING COMMUNITY
SAN FRANCISCO, CA (February 19, 2014) – MidBoss, the team behind the convention known as GaymerX2, is excited to announce that openly gay WWE wrestler Fred Rosser AKA Darren Young, will be participating in this year’s festivities. The convention is to be held at the InterContinental Hotel in San Francisco’s vibrant South of Market neighborhood from July 11-13th.
Darren Young will be signing autographs and joining in Friday’s Opening Ceremonies, as well as Sunday’s Closing Ceremonies. He will also be a part of a panel titled “A Fireside Chat with Darren Young” at GaymerX.
“Darren Young’s involvement in GaymerX is tremendously exciting. We understand the struggle that athletes face in coming out, especially when they live in the spotlight,” quoted Toni Rocca, President of GaymerX. “For a member of an organization as widely watched as WWE to be comfortable with his identity and also to continue to be accepted in his line of work is a great example for all athletic fields out there. We would really like to celebrate that.”
“I am very excited to be a part of this year’s GaymerX convention” Quoted Fred Rosser aka WWE’s Darren Young,”Gay geeks and gamers around the world deserve to have their own community and I’m very proud to be a part of what should be an awesome experience.”
Following the great success of last year’s GaymerX Kickstarter, the 2014 convention will support another Kickstarter, with a pledge where you can actually interact with and chat with Darren Young yourself. There are other pledges including sponsoring the convention, badges for the con, and cute stickers featuring the con’s mascots, Conway and Turing.