Vince McMahon and members of senior management hosted a conference call pertaining to the 2013 third quarter report that was released on October 31, 2013. The following are the highlights of the call.
-The call was hosted by WWE Chairman Vince McMahon, WWE CFO George Barrios, and WWE Investor Relations Michael Weitz.
-Vince said the increased television rights fees offset the "disappointing" SummerSlam numbers and video game sales. Regarding SummerSlam, Vince said fans "didn't buy the attraction, as most of you know these events are attraction driven."
-Vince said they are looking for "traditional and non-traditional distribution" for the WWE Network.
-Vince said their largest television contracts are coming up both in the United States and in the United Kingdom. He said India is coming up shortly thereafter.
-Barrios took over the call temporarily and read through the financial presentation. He noted that revenue increased nine percent and said it was largely due to increased licensing fees and to some extent live events.
-Barrios said "Total Divas" has averaged roughly 1.8 million viewers per week. He noted that it performed 150 percent better than the programming it replaced on E! network.
-Revenue from the pay-per-view business was down ten percent "primarily due to the performance of the SummerSlam event." This is despite the fact that WWE added new digital media platforms for their pay-per-view events, such as Playstation 3.
-The movies released under WWE Studios new film model are expected to bring a 13 percent return.
-Barrios said the company is confident that they can double or triple their 2012 results by 2015 via future television agreements and the WWE Network. He said their key domestic television deals are expected to be done by "next April."
-Barrios compared WWE to live sports. He said the similarities make WWE "DVR-proof."
-Barrios also spoke briefly about the potential WWE Network platforms, then opened up the line for calls.
-The first caller noted that the domestic television deals are expected to be finalized by April 2014 and whether they will maintain their current relationships or end up elsewhere. He questioned whether WWE Vince said there is a certain exclusive negotiating window for current partners that ends on the first of the year. He said they can go outside to other potential partners after that. Barrios said the timeline they are offering is typical for television rights negotiations.
-Vince was asked about the pay-per-view numbers. He once again stressed that pay-per-views are attraction driven. He said it was a "swing and a miss" as far as the attraction they went with. He said the declining numbers really don't have to do with anything other than that.
-Vince closed out the conference call by wishing everyone a good say and saying, "The future looks bright."
-It didn't seem like Vince realized he was still on the line, as could be heard saying, "As Daniel Bryan would say..." There was laughter in the room. One of the three men mentioned something about it being "the shortest" and said no one would have saw it coming.
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October 31, 2013
Vince McMahon conference call coverage: WWE Network, SummerSlam disappoints, television rights negotiations, third quarter financial report
WWE Third Quarter Earnings Up 9%, Beat Estimates
WWE today announced financial results for its third quarter ended September 30, 2013. Revenues increased $9.1 million or 9%, to $113.3 million from $104.2 million in the prior year quarter driven by a significant increase in rights fees from the licensing of television content. Operating income decreased 36% to $3.2 million as compared to $5.0 million in the prior year quarter as revenue growth was more than offset by increased movie losses due to a $7.0 million impairment charge primarily associated with the Company’s 2010-2012 film release slate, and reduced profits from the Company’s pay-per-view, video game and home entertainment businesses. Net income was $2.4 million, or $0.03 per share, as compared to $3.5 million, or $0.05 per share, in the prior year quarter. Excluding the impact of film impairments, Adjusted Operating income increased 104% to $10.2 million, Adjusted OIBDA increased 62% to $16.7 million and Adjusted Net income increased 100% to $7.0 million...More?
Triple H's Response When Asked About Matt Morgan
When Matt Morgan's name was brought up to Triple H about being hired, Triple H's response is that they are spending millions of dollars on the new Performance Center so their focus is on developing younger guys on their own to bring in as opposed to experienced older guys. Obviously if it was a bigger name there could be an exception made, but that is WWE's mentality in most cases going forward.
October 30, 2013
WWE Looks To Build Through Second Screen; Targets First Quarter of 2014 For Launch of WWE Network
Multiplatform content is crucial for the WWE, said Stephanie McMahon, executive VP of creative development & operations at the company on Wednesday during the TV Summit at NYC Television Week.
McMahon told moderator R. Thomas Umstead, programming editor, multimedia editor, Multichannel News, that the WWE's app is changing the way people watch their programs.
"It's been downloaded over 8 million times. What we offer is really a revolutionary second screen experience." McMahon said, adding the app offers behind-the-scenes pictures and facts.
When asked about the WWE's plans to create a network, she was unable to disclose specifics on plans but did say, "We are looking at traditional and nontraditional distribution, and we're targeting first quarter next year."
source: broadcastingcable.com
Forbes analysts speculate new WWE TV licensing deal could top recent $4.5 billion NASCAR deal
Forbes SportsMoney did a piece concerning the upcoming TV licensing deal WWE will presumably sign with NBC Universal. Bob Lorenz, Chris Bevilcqua, and Micheal Ozanian speculated that WWE could receive four to six times its current $140 million per year deal when they resign and point to WWE having three times as many annual gross rating points as NASCAR which recently signed a 10 year, $4.5 billion deal with NBC. You can watch the video at http://web.yesnetwork.com/media/video.jsp?content_id=31193663&topic_id=&tcid=vpp_copy_31193663&v=3.
Backstage News on Paul Heyman's Future
It was previously reported that WWE officials are not very happy with Ryback right now and there was some talk of taking Paul Heyman away from him. As of right now it looks like that may indeed be the case. The Heyman and Ryback vs. C.M. Punk feud was originally supposed to go on for a little while longer but now it looks like it might be finished.
Heyman might be kept off of television until Brock Lesnar returns. No word on how all of this affects Curtis Axel.
Ryback Buried in WWE Producer’s Meeting, Main Roster Spot in Jeopardy?
Earlier this week we reported the backstage heat on Ryback, specifically stemming from rumors of him being a danger to work with, was said to be fabricated by someone close to the situation in WWE.
In an update to that story, however, following this Monday's Raw, a high level WWE source has informed WZ that a recent producer's meeting saw Ryback buried, and he indeed has enormous backstage heat, and is not well liked at all. Producers and backstage agents, but not necessarily Vince McMahon himself, feel Ryback is awkward and "not safe enough" in the ring.
"Just look at how Ryback got buried on Monday, getting beat and tapping out after being put through a table in 5 minutes," our source told us.
The source further told us following Hell in a Cell on Sunday and this week's edition of Raw, Ryback is short term for the main roster at best.
Triple H In Charge At SmackDown
PWInsider noted that Vince and Stephanie McMahon were not at last night's taping, leaving Triple H in charge of the show.
Former Diva Getting Reality Series?
The Chicago Tribune is reporting that the producers of Tru TV’s “Hardcore Pawn: Chicago” are working on a reality TV show with Lisa Marie Varon. The show would revolve around Varon and her Chicago restaurant, The Squared Circle, and her unusual career path from pro wrestler to restaurant owner. Cameras were filming last Sunday night when the restaurant hosted patrons for WWE Hell in a Cell. Click here for the Chicago Tribune article.
WWE Hits "Reset Button" at RAW
What WWE did is being described as a "reset" on the storylines with Monday's RAW. Vince McMahon was making changes and scripts were being re-written as late as 3-4pm on Monday afternoon. As noted, original plans had Vince McMahon returning to get involved with Big Show but as they were re-writing the scripts on Monday, Vince was written out.
Word coming out of RAW is that Shawn Michaels is finished in the storylines until he's needed again. Daniel Bryan putting the Yes Lock on Shawn was Bryan getting revenge and ending the angle. There has been no talk at all about HBK coming out of retirement to wrestle another match.
