Longest Running Triple H Fansite
Since 2006

August 2, 2013

WWE discloses more business items - WM29 price increase a wash?, TV Revenue, new corporate jet, Tout investment, Network costs, U.K. performance, investment in "live event touring business," tax credits, more


Inside WWE's 10-Q filing with the SEC on Friday are some additional notes on WWE's Second Quarter 2013 (April through June) business:

- WWE provided data that points to the PPV price increase for WrestleMania almost being a wash when looking at the entire Second Quarter financial picture.

The price of WrestleMania increased 9.0 percent domestically, leading to the average revenue per PPV buy for all events in the Second Quarter being $23.92, up 11.7 percent from $21.41 in Q2-2012.

WWE disclosed: "Revenue from the three events in the quarter declined 3.0 percent versus the prior year quarter as a combined 13.0 percent decline in buys was nearly offset by a 12.0 percent increase in the average revenue per buy."

- WWE's quarter-over-quarter increase in TV Rights Fees Revenue is broken down as:

$38.0 million domestically vs. $32.4 million in Q2-2012 and $14.2 million internationally vs. $13.1 million in Q2-2012.

- WWE's purchase of a new corporate jet was made official on June 16. The purchase price was confirmed at $27.0 million to replace the current jet. Adding in improvements and upgrades to the aircraft, the total cost will be $31-33 million.

WWE noted they will sell the current jet "after completion of the purchase of the new aircraft and subsequent refurbishment of both the purchased aircraft and our existing aircraft."

- Staff-related expenses for a potential WWE Network was $2.7 million in the Second Quarter. WWE disclosed: "The Company incurred higher talent development costs of $1.0 million, marketing expenses of $1.0 million, and higher professional fees of $0.7 million, primarily to support our content related initiatives, including the potential launch of a WWE network."

- WWE revealed the financial performance in the United Kingdom, which WWE described as their "largest international market."

In Second Quarter 2013 (which includes WWE's annual post-WrestleMania European Tour), WWE generated $11.825 million in the U.K., compared to $11.427 million in Q2-2012.

For the first six minutes of 2013, U.K. revenue was $19.528 million, down from $19.578 million in the first half of 2012. So, the result is essentially a wash.

- WWE followed up on their $5.0 million investment in Tout by noting they met certain metrics as part of their two-agreement. WWE reported: "During the six months ended June 30, 2013, we achieved the required performance metrics and recorded revenue of $439,000."

WWE subsequently doubled its investment in Tout. WWE was eligible to receive up to 11,250 shares of Tout common stock over the life of the agreement, then WWE increased its Tout investment to 22,500 shares.

- On May 30, WWE made an investment of $2.2 million in a "live event touring business." WWE did not detail who the company is. WWE disclosed: "Our investment does not provide the ability to exercise significant influence over the investee."

- WWE revealed their latest revenue from Film & Television Production Incentives, which comes from filming TV in various U.S. states that have a tax credit.

In Second Quarter 2013, WWE received $437,000 in tax credits (vs. $395,000 in Q2-2012). For the total first six months of 2013, WWE received $1.148 million (vs. $1.560 million in the first half of 2012).


0 comments:







Post a Comment

Your comment awaits moderator approval. Comments that are abusive, spam, off-topic, use excessive foul language, or include ad hominem attacks will be deleted.





 photo i_zps0ebed5ab.jpg
Oderint Dum Metuant: Let Them Hate As Long As They Fear