World Wrestling Entertainment’s earnings took a blow from its film segment, but the company’s live and televised entertainment remains strong.
WWE took a $15 million impairment charge in the second quarter related to revised performance expectations for the feature film The Condemned, the starring WWE star Steve Austin. The result on earnings was a drop to $7 million, or $0.10 per share, from $14.7 million, or $0.21 per share in Q2 2006. Excluding the charge, WWE’s earnings for the second quarter would have been $16.9 million, or $0.23 per share.
Consolidated revenues in the quarter were up 15% to $137.5 million led by a solid 11% gain in the live and televised entertainment segment to $102.9 million and a 29% gain in consumer products to $26.4 million. Live entertainment revenue grew on the continued expansion of WWE events international as well as domestic growth. Live event revenues grew 20% to $30 million from $25 million in the year ago period while pay-per-view revenues were relatively flat at $39.8 million.
"Live and televised revenues were driven by the success of WrestleMania which set WWE records for both the number of pay-per-view buys and gross ticket sales.” WWE CEO Linda McMahon said in a statement, “Consumer products revenues increased 29% over the prior year quarter, reflecting improvements in our home video, licensing and magazine publishing businesses.”