Press release: WWE 2010 Second Quarter Results

The following was issued by WWE today.

WWE® Reports 2010 Second Quarter Results

STAMFORD, Conn.–(BUSINESS WIRE)– World Wrestling Entertainment, Inc. (NYSE:WWE) today announced financial results for its second quarter ended June 30, 2010. Revenues totaled $106.8 million in the second quarter, yielding operating income of $10.3 million and net income of $6.3 million, or $0.08 per share. Impacting comparability to the prior year quarter is the timing of our annual WrestleMania® event, which occurred in the first quarter of 2010 and the second quarter of 2009. Excluding the effects of WrestleMania in the prior year quarter, 2009 second quarter revenues were $106.6 million, operating income was $13.1 million and net income was $10.2 million, or $0.14 per share.

“In the second quarter, our performance fell below management expectations as trends weakened in the latter part of the quarter. Although we believe the continued softness in the economy played a part in our results, recent changes in our talent base may have also impacted key operating metrics, particularly domestic pay-per-view buys and live event attendance,” stated Vince McMahon, Chairman and Chief Executive Officer. “In addition, our profitability was negatively affected by the reduction in revenue from high margin businesses and by the logistical costs related to the Icelandic volcano. We view some of these factors as temporary and, looking ahead, we remain confident in our ability to address these challenges by producing compelling content and cultivating consumer demand. On a positive note, the second quarter reflected improved results in our Home Video business and our continued success in managing our expenses.”

Comparability of Results

WrestleManiaXXVI occurred on March 28, 2010, and consequently, was included in our first quarter financial results. However, WrestleManiaXXV occurred on April 5, 2009 and was included as part of our second quarter results in 2009. WrestleManiaXXV contributed approximately $32.2 million of revenues, $15.0 million of profit contribution ($9.7 million, net of tax) and $0.13 of EPS from across our various business lines in the prior year quarter. For comparative purposes, a schedule excluding the impact of WrestleMania XXV has been provided in the supplemental information included in this release.

To read the full release, click here (thanks to Devin Cutting).