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WWE released its second quarter earnings results today. Overall the results were not good, as they were below analysts expectations and last year’s Q2 results. The main points:

* Revenues for the second quarter were $106.8 million with an opening income of $10.3 million and a net income of $6.3 million. The second quarter last year included WrestleMania, which was in the first quarter this year. When removing WrestleMania, second quarter results last year were $106.6 million in revenue, with $13.1 million in operating income and $10.2 million in net income.

* WWE cited the soft economy as well as “recent changes in our talent base” as the major reasons for the disappointing performance.

“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.”

* Revenues in North America dropped 32% while revenues outside of America increased 3%, compared to last year. When excluding WrestleMania from last year’s second quarter, revenues dropped 5% in North America and increased 11% outside of North America.

* North American TV revenue was way down, from $103.5 million last year to $70.5 million this year.

* Home video revenue was up, from $8.6 million last year to $11.5 million this year.

* WWE.com revenues were down from $4.5 million last year to $3 million this year.

* WWEShop revenues were down from $3.4 million last year to $2.4 million this year.


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PPV's are expensive bro.
 

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Wrestlemania's positioning appears to be key to understanding this in context.
 

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Shawn Michaels leaving did take a lot of viewers, that might be a reason why the sited roster changes as a reason for the earnings changes.
 

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HOLY SHIT I BLAME PG, SON OF A BITCH.

roster changes probably meant Michaels. as for PPV's, economy is down, prices are not. not saying that's the main reason, but even they could connect the dots there.
 

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Student of the game? I am the f***in' Game!!
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I firmly believe it has got to do with the unexpected rise of Swagger and Sheamus. No disrespect to them but people aren't going to buy them as legit. You gotta learn how to transition and ease them into our television screens.
 

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"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.

That's what happens when you stay focus on the big stars and don't pay attention to your young talent
 

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I firmly believe it has got to do with the unexpected rise of Swagger and Sheamus. No disrespect to them but people aren't going to buy them as legit. You gotta learn how to transition and ease them into our television screens.
WWE will however see the long term benefits of elevating talent. How fucked would Raw's main event be if they didn't elevate Sheamus/Nexus/Miz? Cena would still be feuding with Orton or Edge.
 

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Student of the game? I am the f***in' Game!!
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WWE will however see the long term benefits of elevating talent. How fucked would Raw's main event be if they didn't elevate Sheamus/Nexus/Miz? Cena would still be feuding with Orton or Edge.
That is debatable. I'm always for pushing talent but WWE went about it all the wrong ways.

Guys like Miz, Kofi, and even Morrison should've gotten a world title before Sheamus and Swagger as they have been around longer which is a given they have much more name value, in turns might have a slight higher drawing power advantage than the latter. Simple science here.
 

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I don't understand how people can sit down and say, 'Shawn Michaels is no longer in the company, so I'm gonna stop watching wrestling. I'm not gonna be a wrestling fan no more" Really are you that much of a freaking moron that you can't understand the guy won't always be around. It's amazing how people don't support WWE's new rookies but rather support some un known guy in the indies who probably will never even work for WWE.
 
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