Biz Briefs: WWE Profit Declines on Lower Ad Sales

Jun 19, 2006  •  Post A Comment

World Wrestling Entertainment reported a 34 percent decline in fiscal fourth-quarter profit, hurt by declines in cable advertising and live-event revenue. WWE, best known for its “WrestleMania,” “SmackDown” and “Raw” franchises, reported net income of $10.6 million for the three months ended April 30, compared with $16.1 million a year ago. On a per-share basis, the Stamford, Conn.-based company’s profit was 15 cents, compared with 23 cents a year ago. Revenue slipped 3 percent to $114.3 million. WWE’s quarterly results in part reflect a new deal reached in October with cable network USA under which WWE no longer participates in the domestic television advertising sales of WWE shows that run on the channel. That led TV advertising sales revenue to tumble to $2.2 million from a year-earlier $12.5 million. WWE continues to receive TV ad revenue from its Canadian programs. -Jay Sherman

TNS Forecasts Slower Ad Spending

Ad spending in 2006 will grow more slowly than expected, according to a revised forecast released last Tuesday by TNS Media Intelligence. Overall ad spending is expected to increase 4.9 percent this year to $150.3 billion, a smaller gain than the 5.4 percent TNS predicted in January. Amid the overall decline, the prediction for spending on the Internet increased to 13 percent, up from 9.1 percent in the January forecast. The new report presented a mixed bag for television. The biggest gainer will be Spanish-language media, projected to grow at 13 percent, up from 10.4 percent in the original forecast. Spending on network TV is forecast to grow 6 percent, up from 4.5 percent. Cable TV growth is expected at 6 percent, down from 8.4 percent. Spot TV will gain 8.9 percent, up from 7 percent, and syndicated TV will rise 2.6 percent, compared to 4.8 percent. -Jon Lafayette