WWE Fourth Quarter Financial Report

Good stuff for the company.

From 411mania.com.

 

Overview:

  • 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 was due 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.

House shows:

Live Event revenues increased 9% to $25.4 million from $23.3 million in the prior year quarter primarily due to staging three additional events in international markets that in aggregate garnered a higher average ticket price in the current year quarter.

  • There were 78 total events, including 52 events in North America and 26 events in international markets, in the current quarter as compared to 75 events in the prior year quarter, including 52 events in North America and 23 in international markets.
  • North American live event revenue of $13.8 million was essentially unchanged from the prior year quarter, as a 4% increase average attendance to approximately 5,900 fans was offset by a reduction in live event sponsorship sales. The average realized ticket price of $44.59 also remained essentially unchanged from the prior year quarter.
  • International live event revenue increased 23% to $11.6 million from $9.4 million in the prior year quarter. The growth reflected the impact of staging three additional events in the quarter. Additionally, changes in venue mix contributed to both an increase in average ticket price and a partially offsetting decline in average attendance. The average ticket price rose 17% to $81.98 as the current year quarter included three events in Abu Dhabi, an international market that has historically garnered higher ticket prices. Average international attendance declined 7% to 5,200.

Pay Per View:

Pay-Per-View revenues were $15.7 million as compared to $13.0 million in the prior year quarter primarily due to the production of four pay-per-view events in the current quarter as compared to three in the prior year quarter. Revenue for the events held in both the current and prior year quarter increased 2% based on a comparable increase in pay-per-view buys. The average revenue per buy for these events was essentially unchanged from the prior year.

  • WWE Battleground (October): 114,000 buys, No PPV in 2012
  • WWE Hell in a Cell (October): 228,000 buys, up 29,000 from 2012
  • WWE Survivor Series (November): 177,000 buys in 2013, down 31,000 from 2012
  • WWE TLC (December): 181,000 buys, up 6,000 from 2012
  • Buys From Prior Events: 82,000 buys, up 12,000 from 2012
  • 2013 Total: 782,000 buys, up 130,000 from 2012.
  • Note: If you take out the extra Battleground PPV for the quarter, the company still did 16,000 more buys as compared to the same quarter last year.

Consumer Products:

  • Home Entertainment net revenues were $5.0 million as compared to $9.6 million in the prior year quarter. The decrease was driven by a 33% decline in the average price per unit to approximately $8 due, in part, to a higher proportion of catalog sales than in the prior year quarter. This shift derived from changes at retail, including reduced space for DVD inventory and demand for lower priced product. Shipments of catalog titles increased 51% and accounted for 57% of total unit shipments compared to 35% in the prior year quarter. Based on the sustained increase in catalog shipments, which historically have been characterized by lower sell-through rates, estimated returns increased to 51% from 37% of gross revenue. Also contributing to the decline in net home entertainment revenue, overall shipments fell 8% to 1.1 million with two fewer releases in the quarter (9 in Q4 2013 vs. 11 in Q4 2012).
  • Licensing revenues declined 14% to $7.2 million from $8.4 million in the prior year quarter primarily due to reduced sales of toy products in the U.S. and international markets. Despite the fourth quarter decline, domestic retail toy sales increased for the full year and WWE maintained its position with the second highest selling action figure property in the U.S. market. In late 2013, the Company launched a new line of construction toys, a segment of the toy category that has demonstrated strong growth over the last several years. Royalties from the sale of video game and apparel products were essentially flat to the prior year quarter, as modest growth in the U.S. was offset by lower sales in international markets.
  • Magazine publishing net revenues were $1.3 million as compared to $1.7 million in the prior year quarter, reflecting lower newsstand sales in the current year quarter.
TV Revenue
Television revenues increased 2% to $41.3 million from $40.6 million in the prior year quarter primarily due to the production and monetization of Total Divas, a new program, which debuted in July 2013, as well as contractual increases for existing programs licensed in international markets. These increases were partially offset by the timing of one less episode of Raw in the U.S. (due to one less Monday in the fourth quarter of 2013 as compared to the fourth quarter 2012).
WWE Studios
WWE Studios recognized revenue of $5.0 million as compared to revenue of $0.6 million in the prior year quarter primarily due to the performance and timing of results from the Company’s portfolio of movies. The fourth quarter 2013 reflected revenue from Christmas Bounty, a made-for-TV movie that aired in November 2013, and to a lesser extent, revenue from The Call (starring Halle Berry), which was released theatrically in March 2013. Although four movies were released during 2012, these releases had limited impact on revenue recognized in the fourth quarter of that year. WWE Studios’ movie portfolio generated income of $0.1 million in the quarter compared to a loss of $1.2 million in the prior year quarter, which included $0.5 million in film impairment charges. Excluding the impact of film impairment charges, the WWE Studios’ movie portfolio contributed to essentially break-even results in the current year as compared to a loss of $0.7 million in the prior year quarter.
During the current year, WWE Studios recognized revenue of $10.8 million as compared to $7.9 million in the prior year, reflecting the timing of results generated by the Company’s portfolio of movies. In November 2013, the Company released Christmas Bounty, a made-for-TV film. Additionally, five other films were released in the current year (12 Rounds 2: Reloaded, No One Lives, Dead Man Down, The Call and The Marine 3: Homefront) versus four in the prior year.

Based on revised ultimate expectations for the Company’s movies, film impairment charges increased to $11.7 million in the current year compared to $1.2 million in the prior year. Impairments were primarily related to the Company’s 2010-2012 film slate, as well as Dead Man Down, which were released earlier in 2013. As a result, WWE Studios generated a loss of $12.7 million compared to a loss of $5.5 million in the prior year. Excluding the impact of film impairment charges, the WWE Studios’ movie portfolio generated an adjusted loss of $1.0 million compared to an adjusted loss of $4.3 million in the prior year.

Digital Media:
Revenues from our Digital Media related businesses were $11.7 million as compared to $12.1 million in the prior year quarter.

  • WWE.com revenues were $5.7 million as compared to $6.2 million in the prior year quarter with lower aggregate sales of digital content. Key digital metrics such as unique visitors to the Company’s website and mobile app as well as average monthly page views increased from the prior year quarter.
  • WWEShop revenues were $6.0 million as compared to $5.9 million in the prior year quarter reflecting a comparable percentage increase in revenue per order to $47.88. The volume of online merchandise sales remained essentially unchanged at approximately 124,300 orders.
Total revenues for the year ended December 31, 2013 were $508.0 million as compared to $484.0 million in the prior year. Operating income for the current year was $5.9 million versus $43.2 million in the prior year. Net income was $2.8 million, or $0.04 per share, as compared to $31.4 million, or $0.42 per share, in the prior year. OIBDA was $30.4 million for the current year as compared to $63.2 million in the prior year. Excluding items that impacted comparability on a year-over-year basis, Adjusted Operating income was $14.2 million compared to $44.4 million in the prior year, Adjusted OIBDA was $38.7 million as compared to $64.4 million and Adjusted Net income was $8.2 million, or $0.11 per share, compared to $28.1 million, or $0.38 per share, in the prior year.
In summary, WWE is making a lot of money.

20 comments

  1. rick says:

    Que The million dollar man theme.

  2. deanerandterry says:

    As usual good stuff financially. I also find it hilarious that Cena vs. Ziggler at TLC 2012 was barely outdrawn by Cena vs. Orton to unify the titles, also noticed Bryan vs. Orton outdrew Cena vs. Orton by quite a lot. Maybe Bryan isn’t as bad for business as some thought.

    klunderbunker Reply:

    Battleground being the second worst PPV in 17 years doesn’t do him any favors. Granted that whole show was doomed from the start, but WWE won’t see it that way.

    deanerandterry Reply:

    When a PPV has zero time to build its chances for success isn’t too good. Didn’t WWE do this in 2011 (when Show and Henry broke the ring) and got shit buyrates as a result? Or December to Dismember in ’06 being a week after Survivor Series? You would think WWE would have learned their lesson not to put 3 PPV’s in the span of 6 weeks.

    klunderbunker Reply:

    Not to mention it was two weeks before Armageddon.

    Yeah the whole thing was a bad idea and history has shown that you need time to build a story. Even Unforgiven 98, Austin’s first title defense, had a bad buyrate because they didn’t announce his challenger until less than two weeks before the show.

    Bryan didn’t show he’s a draw but he’s worthy of another chance. If that fails though, it’s going to be a long time before he gets another.

    Jay H. (the real one) Reply:

    Yeah having 3 PPVs in the span of 4 weeks is not a good idea and it definitely showed in 2006. They seemed to have somewhat learned that lesson this year with June being the only month with 2 PPVs which is fine. Having two in October before Survivor Series should never happen again I think.

    I do think DB is getting another chance because the rumors are still saying he wins the Title on Sunday.

  3. deanerandterry says:

    I think a second chance is gonna happen for him, he deserves it but i agree if it looks bad this time then WWE can’t be expected to keep him at the top of the card. I wouldn’t expect him to be a mega draw but he has the ability to be a pretty good one.

    klunderbunker Reply:

    That’s what I’ve been saying. There’s nothing wrong with being a low level main event guy and the king of the midcard, but Bryan’s fans seem to think if I say he should be anything less than equal with Cena, apparently I hate him and just don’t treat him fairly.

    deanerandterry Reply:

    Albeit we haven’t seen eye to eye much in regards to Daniel Bryan fans can’t simply expect Bryan to be Cena’s greater or equal, I don’t think Bryan will ever be his equal when its all said and done, Bryans awesome but Cena is top 10 all time in my opinion.

    I think Bryan is main event draw material but at most I don’t see him drawing more than lets say a Bret Hart in the U.S. All in all though Bryan has done better than I would have ever expected of him, even if he dropped down to upper midcard territory he has done VERY well for himself in the E.

    klunderbunker Reply:

    Indeed he has. He’s a multiple time world champion, has won every other title, beat Cena clean in the middle of the ring, been world champion at Wrestlemania and Summerslam. Unfortunately he hasn’t been champion for 18 months straight so none of that matters.

    sal Reply:

    Brayns fans say this because he is getting the loudest pops of any wrestler in the last 10 years. Yes he could be the king of midcard, but there is potential there for something more. I don’t know how to unlock it. Maybe even the E doesn’t know to unlock it. But it is there. Maybe he can be Cena equal or even his better. Maybe Bryan will fall flat on his face. It’s the unwillingness to try that frustrates fans.

    By the way Kb the reason people say you don’t treat Bryan Fairly is because you don’t really hid your Cena Fanboyism. I mean he’s a good wrestler and can be entertaining. You treat him like he’s the greatest wrestler alive and anyone who doesn’t see that is stupid. Maybe you don’t mean it like that, but it’s how you come off.

  4. klunderbunker says:

    1. I’m not a Cena fanboy.

    2. I talk about Cena like that because he is indeed the best in the world today.

    3. That’s not an opinion.

    4. I’m aware most people believe it’s an opinion.

    5. These people are wrong.

    sal Reply:

    1. Yes you are.

  5. ted says:

    See jackass answers like 5 don’t help your case any. 3 Is still an opinion bro one you feel strongly about but an opinion all the same.

    Also Can you even say/write 2 or 5 without being a fanboy? I mean your basically saying if people’s opinion is different from yours it’s wrong. Which sounds pretty fanboyish to me.

    I await your reply about How Cena cures cancer and is the best thing since sliced bread. Draws all the monies, is irreplaceable and so on.

    klunderbunker Reply:

    I can assure you it’s not an opinion. The last line you say shows you know what I’m talking about and don’t want to admit it’s true, so I’ll be saving my time.

    ted Reply:

    History shows that you will reply to anything written so I doubt you’ll be saving your time.

    I just wonder why it bothers you so much when people disagree with you about Cena? I mean he’s your favourite sure, and by proxy the best to you. Not everyone shares this opinion. Why is it so hard for you to coincide to “Cena is the best to me” statement?

    Granted your a smart guy and a good writer.
    But what you write is not fact. It’s that little bit of unwarranted arrogance that seems to chide some people.

    p.s. To put this opinion thing to rest once and for all. A fact is something that is indisputable such as death. Everyone will die, you cannot argue or counter that in any way.

    The Greatest wrestler is opinion based because there is no indisputable criteria to select the greatest. So people are forced to create their own. Hence how opinions are formed and arguments and insults are slung.

    klunderbunker Reply:

    I get annoyed when people tell me what I think. For the love of all things good and holy, John Cena is not, has not been, and never will be my favorite wrestler.

    Let me put this another way. My favorite baseball team is the Cleveland Indians. Do I think they’re the best? Of course not, but I still cheer for them and want to see them win. I like other wrestlers more than Cena, but I know he’s the best.

    I won’t concede that some people may not see Cena as the best because I’m right, they’re wrong, and I enjoy being right. Before you ask, yes I am indeed a jackass at times.

    You’re wrong about there not being criteria. Wrestling has always and will always be about one thing: drawing money. No matter what people like Colt Cabana or CM Punk or anyone else says, wrestling is a business and is about making money. If it wasn’t, wrestlers wouldn’t be paid and it would be free to watch.

    John Cena draws more money than any other wrestler on the planet right now. Therefore, John Cena is the best wrestler in the world.

    ted Reply:

    I get annoyed when people tell me what I think.

    Explain why people telling you they think “insert wrestler here” is the best wrestler in the world. Is telling you what to think? If someone tells you that Cena isn’t the best wrestler. They aren’t telling you, that you aren’t allowed to think that. They’re saying they have a different point of view.
    Surely you don’t think everyone has to agree with you all the time?

    ” but I know he’s the best.”

    This should say think. You can think Cena’s the best, and no one can change your mind on the matter. That does not make it so.

    “I won’t concede that some people may not see Cena as the best because I’m right, they’re wrong, and I enjoy being right. Before you ask, yes I am indeed a jackass at times.”

    This still doesn’t make what your saying true. It is still an opinion. Eh everyone’s a jackass at times.

    If drawing money is the only criteria why isn’t it universally accepted? Why are there star ratings for matches? why do people regard “angle, undertaker, hbk, as the greatest of all time? If money is the only method that matters. Why don’t you just write about show gates and ratings?

    Lets try this one more time. In your opinion whoever draws the most money is the best wrestler ever yes?

    This would make diesel the worst wrestler of all time. As he was the lowest drawing champion/main attraction of all time. Which I have no problem with because he’s worthless. But very people make this claim. Why? It’s not the only way to ascertain the worst.

    p.s.

    1. i’m just curious who is your favourite wrestler of all time?

    2. The WWE draws the most money currently. No one wrestler is vital to the brand. You don’t even know what cena or anyone draws. As you don’t have that kind of information. Vince McMahon has drawn more money than any wrestler ever. No one is going to say he’s the greatest wrestler of all time.

    Bottom line money is important yes. There are other ways to determine the greatest. You can rate the performance. You know the thing they are being paid to do.

    You want to tell me Robert Downy jr is a better actor than Marlin Brando because he made more money?

  6. frank says:

    what ever happend to not jay? are jayces and eights disbanded?

  7. klunderbunker says:

    I don’t get annoyed when people tell me whoever is the best wrestler in the world. I get annoyed when people tell me I’m a Cena mark/fanboy.

    Drawing power isn’t accepted as the universal way of determining ability because a lot of wrestling fans don’t think about what they’re talking about. Now that being said, I’m well aware that I spend a ridiculous amount of time researching, thinking and writing about wrestling and it’s absurd to expect everyone to think about it as in depth as I do.

    Actually when you think about it, and I’m not trying to start anything with this, Daniel Bryan is the lowest drawing WWE Champion ever. How many extra tickets do you think were sold because he was champion? His reigns lasted a combined what, 22 hours?

    Seriously though, the worst WWE Champion ever wouldn’t be the worst wrestler ever. Using this idea, the worst wrestler ever would be someone who no fans paid to see, meaning someone who wrestled once and was probably a jobber.

    As for your questions:

    1. Mick Foley. I bought into the idea of someone who was always told he wasn’t good enough and didn’t look right but just kept fighting until he reached his goals.

    2. Actually I do. There was an article in I think Forbes that said John Cena was responsible for bringing in roughly $100 million in revenue in 2012, more than anyone else. You can also look at merchandising numbers over the years and ratings/buys when certain people are on top. The latter of those two is far less of an exact science and more educated guessing/analysis of course.

    Also the Vince thing isn’t likely. Back in 1998, Austin’s t-shirt sales alone brought in a quarter billion dollars. That’s so ridiculous it’s unreal.

    Here’s the thing though: wrestlers aren’t paid to perform. They’re paid to bring money into the company.

    As for the Brando vs. Downey question, that’s a completely different thing as neither works for the same company all the time. They’re in business for themselves.