Shares of WWE were up more than 2% this afternoon, even though company said revenues and profits were down in 3Q — and it took a $5.1M write-down on its films Inside Out, The Chaperone, and Knucklehead. The company reported net income of $10.6M, down 26.1% vs last year, on revenues of $108.5M, down 9.5%. Earnings of 14 cents a share missed the 15 cents that analysts expected, but the revenues exceeded their $106.7M target. WWE says that its problems were mostly centered at two units: Revenues fell 51.3% to $3.7M at its WWE Studios due to the poor performance of its films, and dropped 7.5% to $19.8M at the Consumer Products unit that struggled with lower licensing revenues from toys. But the core Live and Televised Entertainment operation held on, with revenues up 5.8% to $78.1M — partly due to increased PPV sales for WrestleMania. “We believe the sluggish economy and our ongoing talent transition were important factors that affected the results of our other businesses,” CEO Vince McMahon said. “Based on our history of developing talent and creating content with broad appeal, we are confident we can address our creative challenges.” He also vowed to “monitor and refine” the film business “to improve future performance.”
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This article was printed from http://www.deadline.com/2011/11/wwe-3q-dips-as-film-unit-dents-earnings/
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