The following was issued by WWE today.
WWE® Reports 2010 Fourth Quarter and Full Year Results,
Posting Record Full Year EBITDA and 6% Rise in Net income
STAMFORD, Conn., February 10, 2011 – WWE (NYSE:WWE) today announced financial results for its fourth quarter ended December 31, 2010. Revenues totaled $122.5 million as compared to $117.3 million in the prior year quarter. Operating income was $14.4 million as compared to $17.8 million in the prior year quarter. Net income was $8.1 million, or $0.11 per share, as compared to $11.2 million, or $0.15 per share, in the prior year quarter.
“In 2010, WWE achieved record operating performance, generating the highest level of reported EBITDA in the Company’s history despite a challenging environment, particularly over the latter part of the year. Difficult trends continued in the fourth quarter and were exacerbated by the performance of Home Video,” stated Vince McMahon, Chairman and Chief Executive Officer. “For the quarter and the full year, our businesses exhibited three major areas of strength: increased value from our television content, significant growth from our new toy licensing partnership with Mattel, and continued financial discipline. These strengths served to mitigate the impact of a weak economy,
changes in our talent base, and unfavorable industry trends in home video. We remain confident that we can address our talent related challenges, expand both our content and distribution and, leveraging our strengths, drive meaningful growth.”
Comparability of Results
Impacting comparability to the prior year quarter are production tax credits and charges associated with the write-down of a receivable due from a former business partner in the prior year quarter. Excluding the impact of these items, Q4 2010 Adjusted Operating income decreased 22% to $14.4 million and Adjusted EBITDA decreased 20% to $17.6
million. The Q4 2009 results included a $6.4 million charge associated with the writedown of a receivable due from a prior business partner. In addition, the Q4 2009 results
included approximately $5.8 million of tax credits received related to our television and digital media production activities, which were recorded as a reduction of the direct
expense in these areas and in our selling, general and administrative costs. (See Schedules of Adjustments in Supplemental Information). Please note that our revised
film strategy utilizing a self-distribution model impacts the comparability of results but is not adjusted for in the aforementioned schedules.