I split this into its own post because there's a lot of news on this end to cover. Read on for all of it and my take on it.
WWE's revenue for the first 3 months of 2011 is $119.9 million. Last year's first quarter (which included WrestleMania) saw $138.7 million. If you remove the results of WM26, that figure would have been $109.9 million.
Operating income was $13.2 million, compared to $37.3 million ($22.6 million w/o WM26) in 2010 Q1. Net income was $8.6 million, compared to $24.7 million ($14.7 million w/o WM26). Some of this was attributed to an increase in SG&A expenses.
As for PPV buys, 2011's Royal Rumble got 446,000 buys vs. 462,000 buys for last year. Elimination Chamber was 199,000 vs. 285,000. Some of that decrease was due to the UK PPV partner not picking it up for whatever reason. It's unknown how large of an effect that had. Both numbers are the lowest for those shows in at least 5 years. Again, they've got to keep growing the product with more acts we want to see, and saving the big clashes for PPVs.
WWE's film division also took a significant hit in Q1. Film profits declined $5.5 million, and they actually took a $1.5 million loss on "The Chaperone". They're stressing a long-term approach here, but so far, this division isn't doing well at all. If things don't turn around in future quarters, it could be time to put this on the shelf next to the XFL.
WWE's net income per share was $0.11 in Q1. Not so good.
WWE has "Strong performance" in their Consumer Products division, led by growth in licensing and home videos. However, magazine publishing was down. Discounts and sales helped a lot of those DVDs. The deal with Mattel and releasing WWE All-Stars was a boost, too.
McMahon talked more about the new WWE in his conference call. He also gave notes on the positive signs for Q2. Ratings are up, Tough Enough's doing well, and Mania pulled in a big number.
On the WWE Network front, they're wisely planning on combining TV distribution with that for online and mobile devices. A good portion of their programming will come from their video library. They've got countless hours of stuff there to use.
They're looking at "new live event programs". More on that when it becomes available. They're also looking at where to air NXT and Superstars. It's affecting revenue to not get licensing fees for those shows in the U.S..
As for slashing the dividend, they did that partly to free up cash to invest in new TV production and facilities.
That's all for the news on this front. The other news post will be out shortly.
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