WWE Financials: TV Revenues Up, Home Entertainment and Digital Media Down
Posted by Larry Csonka on 07.31.2014
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- The WWE released their 2014 Q2 earnings reports today, and here are more details on the financials.
TV revenues increased 13% to $43.8 million from $38.7 million in the prior year quarter primarily due to the second season production and monetization of Total Divas and, to a lesser extent, contractual increases for existing programs. Total Divas (Season 1) debuted in the third quarter 2013.
Home Entertainment net revenues decreased to $5.4 million from $7.1 million in the prior year quarter reflecting a 40% decline in units shipped, which was partially offset by an increase in the average effective price. The decline in unit shipments reflected reduced shipments of WWE's catalog titles, which are typically characterized by lower prices and profit margins than new releases. As a result, new releases comprised approximately 70% of total units shipped as compared to 45% in the prior year quarter. Primarily reflecting this change in product mix, the average effective price increased 27% to $13.49. (On a year-to-date basis, average pricing is essentially flat as compared to the prior year period.)
Digital media: net revenues were $5.2 million compared to $7.4 million in the prior year quarter. The decline reflected lower monetization of the Company's pay-per-view webcasts via WWE.com, as these events became available in the U.S. on WWE Network, as well as lower advertising across various platforms.