In today’s first quarter 2014 financials report, the WWE announced
that there was good news for the WWE Studios division. Usually a loser on the
reports, revenue increased to $4.3 million from $1.9 million in the prior year
quarter. This was due to the strong performance of The Call, which was released
theatrically in March 2013.
WWE Studios’ movie portfolio generated income of $1.6 million in
the quarter. They lost $5.0 million in the prior year quarter, which included
$4.7 million in film impairment charges. Recent movies, such as the direct to
DVD Scooby Doo! WrestleMania Mystery and Oculus, which was released in theaters
in April, 2014, have shown strong performances that are in-line with the
company’s expectations.
At this time, the Company’s movie releases since late 2012 are
expected to generate an IRR of over 15%, which exceeds the Company’s estimated
cost of capital.
