Black Widow
11-04-2010, 05:27 PM
CHRIS JERICHO ONLY 'TEMPORARILY' OUT OF WWE RINGS, NEXUS A BIG MERCHANDISE SELLER, WWE NETWORK UPDATE AND MORE
WWE held an investor conference call today to discuss the second quarter numbers which were released this morning. You can read the numbers at this link (http://www.pwinsider.com/article.php?id=52417&p=1). Participating in the call were Chief Financial Officer George Barrios and Chief Operating Officer Donna Goldsmith. Chairman & Chief Executive Officer Vince McMahon, who was supposed to participate in the call, was not there. Goldsmith only said that Vince couldn't join them today, and gave no reason for him not appearing. This marked the first time WWE held an investor call without a McMahon (either Vince or Linda) involved.
Goldsmith read a prepared statement, praising the performance of the Mattel toy line, particularly in Mexico. Explaining soft business, it was pointed out that Batista and Shawn Michaels retired, Undertaker and CM Punk have missed time with injuries, and that Chris Jericho was "temporarily out of the ring" for the company. She pointed out that they are building up new stars, naming Wade Barrett, Nexus and Alberto Del Rio. In mentioning the WWE Films projects, she noted their productions set for 2011 have much smaller budgets.
George Barrios then reviewed the financial numbers, which you can check out by clicking here (http://www.pwinsider.com/article.php?id=52417&p=1). He also mentioned "changes in their talent base" when pointing out drops in numbers, as well as "weakness in the economy." Barrios praised their live event in China, noting the potential that country holds as a market for the company. He also noted that they made more money on PPV events in the quarter, year over year, due to the price increase. Barrios also talked about the huge success of the Mattel toy line. He pointed out that WWE has seen an increase in online orders, but a drop in the average amount per order. Barrios closed by noting that WWE has completed assembling a three-year business plan, which they will outline during the next quarter's conference call.
A Q&A was then held. Here are highlights from the session:
When asked if WWE planned on making further cuts to curb expenses, Goldsmith noted that they are always mindful of their expenses, but their focus is on creating talent and storylines and waiting out the current economic climate.
When asked if they have "turned the corner" in getting PPV buyrates back to 2009 levels, Barrios noted that Money In The Bank had a dropoff from the PPV in the prior period, but the other two PPVs in the period were relatively "flat' with last year, despite the price increase. He said he wouldn't call that data enough to identify a trend, but obviously was a good sign.
It was pointed out that in addition to the Wal-Mart exclusives WWE has arranged for their film releases, they have international distribution deals for all the films as well.
Goldsmith pointed out that merchandise sales for Nexus has gone up, especially since John Cena joined the group. She also praised Wade Barrett and Alberto Del Rio, noting the company is focused on bringing them up as top stars.
Regarding the launch of the WWE cable network, Goldsmith said they are still looking at creating the channel, and plan to talk to potential partners and get "more into it" after the first of the year.
Regarding "collectors vs. kids" when it comes to toy sales, it was noted that collectors always go for new releases, so their focus is to advertise to kids, including purchasing advertising on kids programming. It was also mentioned that Mattel has released items that appeal more to collectors, items that appeal more to kids, and sets that are targeted for gift buyers. They were very happy with the way Mattel has segmented the toy business to capitalize on all buyers and the numbers that have come in thus far.
Concerning having lower priced items available in this economic climate, Goldsmith mentioned that Mattel and their other licensees have a variety of items in different price ranges, and it is something they are always monitoring.
The call ended in less than a half hour, with no one asking exactly why Vince was not at the call.
PWI
WWE held an investor conference call today to discuss the second quarter numbers which were released this morning. You can read the numbers at this link (http://www.pwinsider.com/article.php?id=52417&p=1). Participating in the call were Chief Financial Officer George Barrios and Chief Operating Officer Donna Goldsmith. Chairman & Chief Executive Officer Vince McMahon, who was supposed to participate in the call, was not there. Goldsmith only said that Vince couldn't join them today, and gave no reason for him not appearing. This marked the first time WWE held an investor call without a McMahon (either Vince or Linda) involved.
Goldsmith read a prepared statement, praising the performance of the Mattel toy line, particularly in Mexico. Explaining soft business, it was pointed out that Batista and Shawn Michaels retired, Undertaker and CM Punk have missed time with injuries, and that Chris Jericho was "temporarily out of the ring" for the company. She pointed out that they are building up new stars, naming Wade Barrett, Nexus and Alberto Del Rio. In mentioning the WWE Films projects, she noted their productions set for 2011 have much smaller budgets.
George Barrios then reviewed the financial numbers, which you can check out by clicking here (http://www.pwinsider.com/article.php?id=52417&p=1). He also mentioned "changes in their talent base" when pointing out drops in numbers, as well as "weakness in the economy." Barrios praised their live event in China, noting the potential that country holds as a market for the company. He also noted that they made more money on PPV events in the quarter, year over year, due to the price increase. Barrios also talked about the huge success of the Mattel toy line. He pointed out that WWE has seen an increase in online orders, but a drop in the average amount per order. Barrios closed by noting that WWE has completed assembling a three-year business plan, which they will outline during the next quarter's conference call.
A Q&A was then held. Here are highlights from the session:
When asked if WWE planned on making further cuts to curb expenses, Goldsmith noted that they are always mindful of their expenses, but their focus is on creating talent and storylines and waiting out the current economic climate.
When asked if they have "turned the corner" in getting PPV buyrates back to 2009 levels, Barrios noted that Money In The Bank had a dropoff from the PPV in the prior period, but the other two PPVs in the period were relatively "flat' with last year, despite the price increase. He said he wouldn't call that data enough to identify a trend, but obviously was a good sign.
It was pointed out that in addition to the Wal-Mart exclusives WWE has arranged for their film releases, they have international distribution deals for all the films as well.
Goldsmith pointed out that merchandise sales for Nexus has gone up, especially since John Cena joined the group. She also praised Wade Barrett and Alberto Del Rio, noting the company is focused on bringing them up as top stars.
Regarding the launch of the WWE cable network, Goldsmith said they are still looking at creating the channel, and plan to talk to potential partners and get "more into it" after the first of the year.
Regarding "collectors vs. kids" when it comes to toy sales, it was noted that collectors always go for new releases, so their focus is to advertise to kids, including purchasing advertising on kids programming. It was also mentioned that Mattel has released items that appeal more to collectors, items that appeal more to kids, and sets that are targeted for gift buyers. They were very happy with the way Mattel has segmented the toy business to capitalize on all buyers and the numbers that have come in thus far.
Concerning having lower priced items available in this economic climate, Goldsmith mentioned that Mattel and their other licensees have a variety of items in different price ranges, and it is something they are always monitoring.
The call ended in less than a half hour, with no one asking exactly why Vince was not at the call.
PWI