WWE Financials: TV and Home Entertainment See Increases – Digital Media Sees Slight Drop
Posted by Larry Csonka on 05.01.2014
An additional Monday in the quarter helps TV revenue…
- In today's first quarter 2014 financials report, the WWE announced that the TV and Home Entertainment divisions saw increases for the first quarter, which digital media saw a drop…
Television revenues increased 8% to $40.6 million from $37.7 million in the prior year quarter primarily due to the second season production and monetization of Total Divas, a program that debuted in July 2013, and contractual increases for existing programs. Additionally, the increase in television revenues reflected the timing of one additional episode of Raw in the U.S. (due to an additional Monday in the first quarter of 2014 as compared to the first quarter of 2013).
Home Entertainment net revenues increased to $10.5 million from $7.0 million in the prior year quarter reflecting adjustments related to prior year sell-through estimates and contractual guarantees. Specifically, the quarter reflected the recognition of a $2.5 million minimum guarantee short-fall related to 2013 sales and a $2.2 million adjustment for higher current sell-through rates than anticipated for late 2013 releases. As a result of the latter adjustment, returns represented 24% of gross domestic retail revenue as compared to 49% in the prior year quarter. These factors were partially offset by a 17% decline in the average effective price to $7.88 and an 11% decline in units shipped.
Digital Media net revenues were $6.7 million compared to $7.1 million in the prior year quarter. Lower newsstand revenue from the Company's print magazine more than offset the increased monetization of video content across various digital platforms.