According to WWE’s 2012 Second Quarter Results, revenue from Consumer Products businesses decreased 25% to $16.1 million from $21.6 million in the prior year quarter. This is due to a big loss in licensing revenue. Here is the breakdown from the report…
* Licensing revenues were $6.6 million as compared to $12.0 million in the prior year quarter. The 45% decline was primarily due to a $4.6 million reduction in video game sales with one fewer release, WWE All Stars, in the period. WWE All Stars was released in March 2011 and will not be refreshed in the current year. Additionally, royalties from the sale of toys declined 12%, or $0.4 million, with lower associated promotion and retail support. Although shipments of our franchise video game, WWE ’12, increased 13% in the quarter to 221,000 units, shipments have declined 23% year-to-date.
* Magazine publishing net revenues were $1.3 million as compared to $1.6 million in the prior year quarter, reflecting lower newsstand sales in the current year quarter.
* Home Video net revenues were $7.8 million as compared to $7.5 million in the prior year quarter. The 4% increase in revenue was primarily due to the recognition of minimum guarantees from our international licensing activities. Domestic home video revenue was essentially unchanged from the prior year quarter. In the current year quarter, a 9% decline in shipments to 837,200 units and a 3% decline in average price per unit to $12.16 were offset by improved sell-through rates, primarily from our prior period releases. Estimated home video returns decreased to 39% of gross retail revenue as compared to 41% in the second quarter last year.