World Wrestling Thumps Estimates

Earnings and revenue both top Wall Street forecasts.
Author:
Publish date:

World Wrestling Entertainment

(WWE) - Get Report

posted better-than-expected second-quarter results, aided by strong sales of home video products and revenue from digital media.

For the period ended Oct. 27, the professional wrestling producer earned $10.4 million, or 15 cents a share, on revenue of $96.2 million. Analysts polled by Thomson First Call expected earnings of 13 cents a share and revenue of $90 million.

During the year-earlier period, World Wrestling earned $11.7 million, or 17 cents a share, on revenue of $88.9 million.

"We are very pleased with our revenue growth in the current quarter," said CEO Linda McMahon in a statement. "This reflects the continued expansion of our home video and digital media businesses along with increased attendance at our live events."

The company's live and televised entertainment revenue rose by 2% to $64.3 million, hurt in part by the absence of cable advertising revenue under an arrangement with USA Network, which accounted for $5.6 million of revenue in the prior-year quarter.

Revenue in World Wrestling's consumer products business jumped to $25.4 million from $21.6 million, helped by a 67% increase in DVD units sold. Digital Media revenue rose to $6.5 million from $4.3 million last year, with gains in advertising revenue from WWE.com and a 99% increase in orders from WWEShop, its online retail site.

Shares of World Wrestling were trading up 33 cents, or 2%, to $16.47.