The WWE announced results for its first quarter for 2013 on Thursday via conference call. The WWE’s revenues were flat from last year thanks to the film business.
There is no word on the launch of the WWE Network although it spent $500,000 on it in the first quarter.
The WWE revenues were up modestly from last year: $124M from $123.9M. But, its net income was down sharply from $15M last year this quarter to $3M.
Other notes:
WWE Films’, Dead Man Down, lost $4.7 million while the bankruptcy of its former video game maker, THQ, caused a $2.1 million positive impact. Dead Man Down which starred Collin Farrell was a box office flop domestically. It was advertised during UFC 156. In fact, Bigfoot Silva knocked out Alistair Overeem in front of the Dead Man Down signage during their fight. It was probably the lasting memory of that movie. It anticipated a $3M loss from video game sales due to the bankruptcy of THQ but wrote it off and settled with the bankrupt video game manufacturer in order to sign an agreement with Take Two. Thus, in its balance sheets it showed a positive impact of $2.1M positive impact to revenue and $3.4M positive impact to operating income.
The WWE also spent money on the construction of a training facility in Orlando, Florida to support its up and coming wrestlers.
Although PPV buys and domestic attendance were up, international attendance at events were down. Also, paying The Rock and Brock Lesnar offset the revenue by the WWE although one may expect their appearances may benefit in the long run.
Payout Perspective:
The WWE may be nearing an end to its film division if it continues to lose money. “The Call,” starring Halle Barry has been the studio’s only real domestic hit. It was expected to make between $11-12M at the box office its first weekend in limited theaters but ended up making $17M. Yet, this was offset by “Dead Man Down” this quarter. With the WWE focusing its spending on the anticipated launch of its network, we may see the company take a critical look at this division. The second quarter is likely to be better as we should see the results of this year’s Wrestlemania as it is being reported that PPV buys are over 1 million.
I thought it was hilarious how they tried to cast Orton as a marine, only to discover that he had in fact gone awol. That says alot about what is going on over at WWE films.I think WWE should take eddie murphys advice in Bowfinger. ‘Its too cerebral; we’re trying to make a movie not a film!”