Its third-quarter net income jumped 60 percent to top expectations as cost cuts offset a decline in revenue said by WWE inc on Thursday.
The poor economy and WWE's ongoing transition between wrestling characters were essential factors in the declines said CEO Vince McMahon.
World Wrestling Entertainment Inc. said Thursday that its third-quarter net income jumped 60 percent to top expectations as cost cuts offset a decline in revenue.
CEO Vince McMahon said the weak economy and WWE's ongoing transition between wrestling characters were important factors in the declines.
The Stamford, Conn., entertainment company said it earned $14.3 million, or 19 cents per share, in the three months ended Sept. 30. That compares with earnings of $8.9 million, or 12 cents per share, in the same quarter of 2009.
Excluding one-time items, the company earned 14 cents per share. Revenue fell nearly 2 percent to $109.6 million, as increased international sales only partly offset a drop in North America revenue.
The results beat the average estimates of analysts surveyed by Thomson Reuters, who expected earnings of 12 cents per share on $108.3 million in revenue. Analysts typically exclude one-time items from their estimates.
Selling, general and administrative expenses were $24.3 million, down from $33.1 million the prior year. That helped offset a 5 percent drop in net revenue from its biggest unit, live and televised entertainment, to $73.8 million. WWE said it had 15 fewer events in North America during the quarter but lower average attendance, both domestically and internationally, was offset by higher average ticket prices.
Consumer product revenue fell 7 percent to $21.4 million and digital media businesses, including the company's web sites, fell 8 percent to $6.8 million. Revenue from WWE studios, which had seven released films, more than doubled to $7.6 million from $3 million last year, however.
World Wrestling shares rose 30 cents, or 2.2 percent, to close at $13.96.
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