John
08-06-2009, 05:58 PM
WWE held their 2nd Quarter Earnings report call today, here are the highlights:
The call started at 11:00AM.
Michael Weiss begins the call. They remind us that the numbers that have been released already.
Vince joins the call and says they did a good job in the quarter, and did solid growth even with the recession and decline in sales. He says that they are efficient, and with WrestleMania in the quarter, they did well.
With a 18% decline in revenue, WrestleMania helped the quarter. They more than doubled profits of last year at this time.
There was a 4% increase in attendance with WM taken out of the equation. Year to date they are about the same as last year, which is solid, but not great.
Ratings are generally up, which he sees as a positive.
PPV buys need to be addressed, as they are down 4%, which he says is part economy, and part WWE content.
They are working on a three year business plan, which they will roll out next quarter.
There was a 7% increase in revenue, and again, that is due to WrestleMania being in the quarter. Without the event, operating income has increased.
Profit margins increased, and WM brought in $32 million in revenue. The event double profit and earnings of last year's WM event.
Live events and PPV were impacted by changes in currency exchange rates.
Merchandize sales were down 24% internationally, due to lower ticket prices, merchandise prices and less events, and a weak global economy.
They increased 4% in domestic ticket sales, but prices were down, so less revenue.
Buys for the PPV's are down 4% as far as PPV's in the same quarter last year.
TV revenue is up, due to the addition of Superstars.
Licensing revenue remained, or the same as last year. The Legends of WrestleMania game helped make up for lower sales of the Raw vs. SD franchise.
Home video is down, due to two less titles released, and the overall decline of the industry.
Digital media was flat, or the same as last year.
As sales are up this quarter.
They have new partnerships with 7-Eleven and Pepsi Max.
They expect WWE Studios to break even or make a profit soon.
They had reduced operating expenses this quarter.
Operating income was up 134%, due to WrestleMania.
Net income was $10.2 million, without WrestleMania.
They have $230 million in cash revenue, with little to no debt.
They will continue to run the company to increase their cash returns, and will be working on a 3-year plan next quarter,
They now take questions.
In regards to guest hosts, Shaq increased ratings very well. They are trying to reach out to a new audience and increase viewership. ESPN covered Shaq very well, and they got good entertainment press for Seth Green and Jeremy Piven. They plan to broaden the audience, which should help revenue.
In regards to the Pepsi Center deal, there is no legal litigation, but he wants an apology. They sent the Center a $300,000 bill for the change.
WWE Superstars has been seen as a success, and right where they and WGN wants it to be. They are always looking to expand, and they are going to negotiate with the USA network soon for a new deal.
In regards to WM, they were more efficient this year, and staying indoors saved on the cost. It was a combination of everything working right together.
In home video, the industry is down, and they have been solid up until this year. They are looking to change the content to better work the business model. Shipments are down, and the titles are down, but that will be made up later in the year.
WM will be modeled after this year's event in the way they were able to run the event efficiently.
Vince says things are business as usual in regards to THQ and JAKKS. JAKKS are "not their friends".
In regards to 12 Rounds, it will be profitable, and all the films combined, they show a small profit. He is proud of that and they are learning about the film industry with every film.
As far as the dividend, they review it every quarter, and he considers all of the aspect, and it will stay where it is.
He doesn't discount tickets, it is the wrong thing to do and it devalues the product. They adjusted the lower ticket prices due to the economy, and he feels that they are the best value in al of entertainment.
They plan for 75-80 international events a year, and domestically, they were up 18 events as opposed to last year. That will not happen in the second half.
More international events will be planned, not "A-Level" events, but also not in "A-Level" places.
In regards to TV revenue, they have escalating contracts, so they make more as the contract goes on. Also the Superstars contract has been beneficial.
Live events have less merchandize available due to space restrictions. But WWEShop is where everything is available. In addition, they sell their own products, and in other retail outlets.
The call ended at 11:36AM.
The call started at 11:00AM.
Michael Weiss begins the call. They remind us that the numbers that have been released already.
Vince joins the call and says they did a good job in the quarter, and did solid growth even with the recession and decline in sales. He says that they are efficient, and with WrestleMania in the quarter, they did well.
With a 18% decline in revenue, WrestleMania helped the quarter. They more than doubled profits of last year at this time.
There was a 4% increase in attendance with WM taken out of the equation. Year to date they are about the same as last year, which is solid, but not great.
Ratings are generally up, which he sees as a positive.
PPV buys need to be addressed, as they are down 4%, which he says is part economy, and part WWE content.
They are working on a three year business plan, which they will roll out next quarter.
There was a 7% increase in revenue, and again, that is due to WrestleMania being in the quarter. Without the event, operating income has increased.
Profit margins increased, and WM brought in $32 million in revenue. The event double profit and earnings of last year's WM event.
Live events and PPV were impacted by changes in currency exchange rates.
Merchandize sales were down 24% internationally, due to lower ticket prices, merchandise prices and less events, and a weak global economy.
They increased 4% in domestic ticket sales, but prices were down, so less revenue.
Buys for the PPV's are down 4% as far as PPV's in the same quarter last year.
TV revenue is up, due to the addition of Superstars.
Licensing revenue remained, or the same as last year. The Legends of WrestleMania game helped make up for lower sales of the Raw vs. SD franchise.
Home video is down, due to two less titles released, and the overall decline of the industry.
Digital media was flat, or the same as last year.
As sales are up this quarter.
They have new partnerships with 7-Eleven and Pepsi Max.
They expect WWE Studios to break even or make a profit soon.
They had reduced operating expenses this quarter.
Operating income was up 134%, due to WrestleMania.
Net income was $10.2 million, without WrestleMania.
They have $230 million in cash revenue, with little to no debt.
They will continue to run the company to increase their cash returns, and will be working on a 3-year plan next quarter,
They now take questions.
In regards to guest hosts, Shaq increased ratings very well. They are trying to reach out to a new audience and increase viewership. ESPN covered Shaq very well, and they got good entertainment press for Seth Green and Jeremy Piven. They plan to broaden the audience, which should help revenue.
In regards to the Pepsi Center deal, there is no legal litigation, but he wants an apology. They sent the Center a $300,000 bill for the change.
WWE Superstars has been seen as a success, and right where they and WGN wants it to be. They are always looking to expand, and they are going to negotiate with the USA network soon for a new deal.
In regards to WM, they were more efficient this year, and staying indoors saved on the cost. It was a combination of everything working right together.
In home video, the industry is down, and they have been solid up until this year. They are looking to change the content to better work the business model. Shipments are down, and the titles are down, but that will be made up later in the year.
WM will be modeled after this year's event in the way they were able to run the event efficiently.
Vince says things are business as usual in regards to THQ and JAKKS. JAKKS are "not their friends".
In regards to 12 Rounds, it will be profitable, and all the films combined, they show a small profit. He is proud of that and they are learning about the film industry with every film.
As far as the dividend, they review it every quarter, and he considers all of the aspect, and it will stay where it is.
He doesn't discount tickets, it is the wrong thing to do and it devalues the product. They adjusted the lower ticket prices due to the economy, and he feels that they are the best value in al of entertainment.
They plan for 75-80 international events a year, and domestically, they were up 18 events as opposed to last year. That will not happen in the second half.
More international events will be planned, not "A-Level" events, but also not in "A-Level" places.
In regards to TV revenue, they have escalating contracts, so they make more as the contract goes on. Also the Superstars contract has been beneficial.
Live events have less merchandize available due to space restrictions. But WWEShop is where everything is available. In addition, they sell their own products, and in other retail outlets.
The call ended at 11:36AM.