World Wrestling Entertainment Inc. (WWE) filed Quarterly Report for the period ended 2009-03-31.
World Wrestling Federation Entertainment Inc. is an integrated media and entertainment company principally engaged in the development production and marketing of television programming pay-per-view programming and live events and the licensing and sale of branded consumer products featuring our highly successful World Wrestling Federation brand. World Wrestling Entertainment Inc. has a market cap of $848.6 million; its shares were traded at around $11.65 with a P/E ratio of 18.7 and P/S ratio of 1.6. The dividend yield of World Wrestling Entertainment Inc. stocks is 12.4%. World Wrestling Entertainment Inc. had an annual average earning growth of 10.5% over the past 5 years.
Highlight of Business Operations:
Live events revenues decreased primarily through the impact of our annual WrestleMania event, which occurred in the second quarter of 2009 as compared to the first quarter results in 2008. Average attendance at our North American events was approximately 6,100 in the current quarter as compared to 7,200 in the prior year. The average ticket price for North American events was $33.54 in the current quarter as compared to $45.39 in the prior year. Excluding the impact of WrestleMania, North American average attendance and ticket price was 6,300 and $38.08, respectively, in 2008. All four international events performed in the current quarter were constructed as buy-out deals with local promoters that provided us with guaranteed revenues and limited the financial risk of performing these events in emerging markets. In the prior year, six of the eight international events performed were constructed as buy-out deals. The profit contribution margin for live events was 32% as compared to 38% in the prior year quarter, with the prior year quarter reflecting the impact of WrestleMania. Excluding the impact of WrestleMania, the prior year profit contribution margin was 30%.
Pay-per-view revenues decreased $27.7 million in the current quarter which reflects the impact of WrestleMania in the prior year quarter. WrestleMania XXIV generated approximately 1.1 million buys in the prior year quarter, or approximately $23.8 million in pay-per-view related revenues. Pay-per-view buys for the two events that occurred in both 2009 and 2008 decreased approximately 16% in the current quarter. Pay-per-view profit contribution margin was 63% for the current quarter, as compared to 32% in the prior year quarter. In the prior year, pay-per-view costs of revenues reflected significant production costs for WrestleMania XXIV, as it was performed in an outdoor stadium, the Citrus Bowl in Orlando, Florida.
Licensing revenues decreased primarily due to a decline in royalties earned from sales of video games and toys in the current quarter. Video game revenues decreased by approximately $5.7 million in the current quarter, reflecting a decline in the performance of our SmackDown vs. Raw title. In addition, royalties earned from the sales of our toys decreased by approximately $0.6 million in the current quarter. The decrease in the licensing cost of revenues reflects lower amounts paid to our talent due to the decreased revenue.