In today’s WWE press release, which discussed the 2012 first quarter results, it was revealed that the WWE’s new relationship with YouTube has been good for the company. When discussing their Internet revenue from WWE.com, they noted a $1.2 million increase, and stated the following…
“WWE.com revenues increased to $3.9 million as compared to $2.7 million in the prior year quarter, primarily due to increased rights fees (YouTube) and higher online advertising sales. The increase in rights fees was driven by a new programming agreement, which licenses original, short-form content to YouTube.”
Also in today’s WWE press release, the WWE Studios division continues to disappoint, showing a loss once again. While the loss wasn’t as bad as previous quarters, impairments from the 12 Rounds film is still hurting the company.
During the quarter, WWE Studios recognized revenue of $4.8 million as compared to $8.6 million in the prior year, reflecting the relative performance and timing of releases from our movie portfolio. In the prior year quarter, we released The Chaperone. In the current quarter, we released Bending the Rules, which has generated lower than anticipated home video receipts in its initial weeks of release. As a result, we revised our long-term ultimate projections for this film and recorded an impairment charge of $0.8 million contributing to an overall WWE Studios loss of $1.0 million in the current year quarter. This result compared to a loss of $3.6 million in the prior year quarter driven by the $2.8 million impairment for our film 12 Rounds.