The WWE recently released the first quarter of 2009 figures, which ended March 31, 2009. As expected, business has taken a slow turn compared to last year’s results, primarily due to the global economic outlook. The company has taken some measures in cutting down costs, letting go of several employees whether they were involved in the front office, backstage, or wrestling talent. There were even talks of Vince McMahon firing his limo driver just to save money.

Revenues totaled $107.8 million as compared to $162.6 million in the comparable prior year quarter. Operating income was $16.7 million as compared to $27.1 million in the prior year quarter. Net income was $10.3 million, or $0.14 per share, as compared to $19.5 million, or $0.27 per share, in the prior year quarter.

• Last year, the WWE posted a $162.6 million quarter, compared to only $107.8 this year.
• The operating income was at $27.1 million, compared to $16.7 million this year.
• This year’s net income is at $10.3 million, compared to $19.5 million last year.
• Shares were at $0.27 last year, down to $0.14 this year.
• Live events earned $18 million this year’s first quarter, down from $24.6 the previous year. WrestleMania 24 alone generated $5.9 million in revenue.
• The attendance in North American events was down to an average of 6,100 from last year’s 7,200.
• Local events increased from 66 to 83 this year but international tours are down from 8 to 4 this year, which resulted to a international tickets sales plunging to $1.0 million from $2.8 million.
• Also taking a hit was the venue merchandise sales, down from $5.6 million to $4.6 million.
• Television rights fees slightly increased from $24 million to $24.9 million this year.
• Video games and toys sales have also gone down, part of their licensing revenues. The WWE only posted $19.8 million in revenue, down from $26.2 million the previous year.
• Home video sales are also down from $14 million to $9.2 million this year. Take note that last year, WWE had more video releases and had 2 fewer title releases this quarter.
• Digital Media related income posted at $6.9 million this year, down from $8.1 million.

The WWE also issued the following statement after releasing the first quarter numbers: “We recorded revenue of $3.7 million in the current quarter related to our three theatrical releases, See No Evil, The Marine, and The Condemned, as compared to $11.3 million in the prior year quarter. During the first quarter we released our fourth feature film, 12 Rounds, which generated approximately $11.8 million in domestic box office receipts through May 3, 2009. During the current quarter we also released one Direct-to-DVD film, Behind Enemy Lines: Colombia.”

With almost every aspect of their business down, the WWE has clearly been hit by the global economic downturn. People can probably expect more money-saving moves the WWE will put to effect this year, including job cuts from office work and the wrestling pool alike.

closeAuthor: Miranda
Name: Miranda

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