WWE Posts 24% Increase in Q3 Profit

Mar 2, 2006  •  Post A Comment

World Wrestling Entertainment said Thursday that it posted a 24 percent increase in fiscal third-quarter profit to $13.9 million, driven by gains in the company’s live-entertainment and televised businesses.

Revenue jumped nearly 25 percent to $103 million.

The company said it saw gains in many of its operations, with an additional pay-per-view event in the quarter helping to push revenue in that category to $19.1 million from a year-earlier $15.5 million. The company’s live-event revenue surged to $18.2 million from a year-earlier $11.3 million, fueled by higher attendance at North American events as well as an increase in the number of international events.

International growth also fueled higher television-rights revenue, which came in at $20.4 million, thanks to additional rights fees from India and South Korea.

Those factors helped to offset a decline in television advertising revenue, which fell sharply to $2.3 million from a year-earlier $10.8 million. The company blamed the decline on an October 2005 change in the television distribution agreement at cable channel USA Network, which leaves WWE unable to participate in domestic television advertising sales.