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WWE Q2 RESULTS: Revenue Break Down & Explanations for each business segment

Jul 30, 2015 - 8:44:03 AM

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By James Caldwell, PWTorch assistant editor

WWE Second Quarter 2015 Business Revenue Break Down

Media Division

- OVERALL: Revenue of $99.1 million, up from $97.7 million in Q2-2014.

- WWE Network/PPV: Revenue of $40.1 million, down 7 percent from $43.3 million in Q2-2014 due to the declining PPV business and timing of WrestleMania.

Individually, Network revenue was $36.6 million, nearly double from $19.4 million in Q2-2014 during the ramp-up period.

Individually, PPV Revenue was $3.5 million, minuscule compared to $23.9 million in Q2-2014 for the WrestleMania quarter.

- Television Rights Fees: Revenue of $52.1 million, up 19 percent from $43.8 million in Q2-2014. WWE continues to realize additional revenue from "domestic and international distribution agreements."

- Home Entertainment: Revenue of $3.1 million, down nearly half from $5.4 million in Q2-2014. WWE said the drop-off "reflects reductions in DVD/Blu-ray shipments and average pricing."

WWE added: "Unit shipments declined by 10 percent to 523,000 units and average effective prices declined 21 percent to $10.70 due, in part, to broader industry declines."

- Digital Media: Revenue of $3.8 million, down from $5.2 million in Q2-2014. WWE said this reflects the absence of WWE Magazine Revenue after the publication was discontinued.

Live Events Division

- OVERALL: Revenue of $26.4 million, down from $40.3 million in Q2-2014. The difference was mainly due to the timing of WrestleMania, with WM31 business already recorded in Q1-2015.

Excluding the timing of WrestleMania, WWE says Live Event Revenue in Q2-2014 would have been approximately $25.7 million.

- North American Live Event Revenue was $16.9 million, down from $29.5 million due to the timing of Mania.

WWE said that "excluding the impact of (WM30), revenue from the Company’s North American live events increased 13 percent, or $2.0 million, reflecting the occurrence of 12 more events than in the prior year quarter and a 5 percent increase in average ticket prices to $46.45."

- International Live Event Revenue was $9.5 million, down 12 percent from $10.8 million in Q2-2014.

WWE attributed the decline to "two fewer events in the current year quarter and adverse changes in foreign exchange rates."

Consumer Products Division

- OVERALL: Revenue of $21.8 million, up 36 percent from $16.0 million in Q2-2014. WWE attributed the increase to Licensing business.

- Licensing Revenue: Revenue of $11.3 million, more than double from $5.5 million in Q2-2014.

WWE attributed the growth to "increased video game revenues that derived from both higher unit sales and effective royalty rates than in the prior year quarter" for the franchise video game via 2K Sports.

WWE says they also "benefited from higher sales of downloadable content associated with the WWE branded game, WWE Supercard."

- Venue Merchandise: Revenue of $4.7 million, down from $6.5 million in Q2-2014, mainly due to the timing of WrestleMania.

- WWE Shop: Revenue of $5.8 million, up 45 percent from $4.0 million in Q2-2014. WWE attributed the "significant rise in orders driven by increased marketing and improved product assortment."

WWE Studios Division

- WWE Studios Revenue: Revenue of $2.1 million, up slightly from $1.7 million in Q2-2014.

WWE noted it's a timing issue. WWE added: "During the quarter, the Company released two feature films, 'The Marine 4: Moving Target' (direct-to-DVD) and 'Vendetta' (limited theatrical). Recent releases that also include 'Leprechaun Origins,' 'See No Evil 2,' and 'The Flintstones & WWE Stone Age Smackdown' have shown performance in line with expectations."

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Source of Revenue

- OVERALL: Total Revenue of $150.2 million, down from $156.3 million in Q2-2014, mainly due to the timing of WrestleMania.

- North America: Revenue of $107.4 million, down from $123.3 million in Q2-2014, mainly due to the timing of WrestleMania.

- International: Revenue of $42.8 million, up from $33.0 million in Q2-2014.

WWE said that "revenues from outside North America increased 30 percent as these growth factors were reflected in the Company’s Media and Consumer Products divisions, respectively, across the EMEA and Asia Pacific regions."