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World Wrestling Entertainment Inc. Reports Operating Results (10-Q)

August 09, 2010 | About:

World Wrestling Entertainment Inc. (NYSE:WWE) filed Quarterly Report for the period ended 2010-06-30.

World Wrestling Entertainment Inc. has a market cap of $1.1 billion; its shares were traded at around $15.03 with a P/E ratio of 22.1 and P/S ratio of 2.3. The dividend yield of World Wrestling Entertainment Inc. stocks is 9.6%. World Wrestling Entertainment Inc. had an annual average earning growth of 2.6% over the past 10 years.WWE is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, John Buckingham of Al Frank Asset Management, Inc., Ron Baron of Baron Funds, John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Our comparative results were significantly impacted by the timing of our annual WrestleMania pay-per-view event. WrestleMania XXVI occurred in the first quarter of 2010. In 2009, WrestleMania XXV occurred in the second quarter. WrestleMania XXV contributed approximately $32.2 million of revenues and $15.0 million of profit contribution ($9.7 million, net of tax) to our prior year quarter results.

Live events revenues decreased primarily due the impact of our annual WrestleMania event, which occurred in the first quarter of 2010 as compared to the second quarter in 2009. Average attendance at our North American events was approximately 5,800 in the current quarter as compared to 8,200 in the prior year quarter. The average ticket price for North American events was $39.50 in the current quarter as compared to $46.25 in the prior year. In the prior year quarter, the WrestleMania event contributed approximately $8.4 million to live event revenue. Excluding the impact of WrestleMania, North American average attendance and ticket price was 7,200 and $34.47, respectively, in the prior year quarter. The profit contribution margin for live events decreased from 35% to 24% in the current quarter, reflecting the costs associated with the Icelandic volcano as well as the absence of WrestleMania.

Pay-per-view revenues decreased $25.2 million from the prior year quarter primarily due to the impact of WrestleMania XXV. WrestleMania XXV generated approximately one million pay-per-view buys in the prior year quarter, or approximately $21.0 million in related revenues. As we eliminated one pay-per-view event and experienced the timing difference of WrestleMania, there were three pay-per-view events in the current quarter as compared to five events in the prior year quarter. Pay-per-view profit contribution margin increased from 57% to 62% in the current quarter, reflecting the absence of advertising and production costs related to WrestleMania in the current quarter.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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