Post by LWPD on Feb 26, 2012 18:33:52 GMT -5
WWE recently came out with their numbers for 2011 Q4. Vince McMahon minced no words in defining this quarter's performance as 'less than stellar'. The company reported an $8.6 million loss, largely due to impairment charges and non-core product start up costs (ie. WWE Studios and WWE Network). Across the board, revenue was either flat or down in most every category. A loss on rights fee revenues from discontinued cable shows (NXT and Superstars) also caused a hit. Guidance going forward is projected as 'flat'.
The launch of the network has been pushed back from Wrestlemania day in April, with no start date. The performance of this year's movie releases (The Reunion, See No Evil, Knucklehead and The Chaperone) were labeled a 'disappointment', underperforming previous projects and placing the entire future of the film division under review. Three other films (which do not feature WWE talent) have already been produced but their release dates are uncertain. A new deal with 20th Century Fox Home Video has been signed for three future movies, including another in the 'Marine' franchise.
I hope if the numbers aren't there, Vince won't force feed this network idea. It's highly unlikely that the red ink that has been bled from the WWE Films division will ever be made back, and its good to see that its future is being seriously reassessed. The television project could do far more damage ($45-50 million just to launch) and over the course of a few years its run rate could do unsustainable damage to P&L if the core business remains weak. At that point it could prove very difficult to rebound.
WWE's 2011 4th Quarter Earnings Report PDF
WWE's 2011 4th Quarter Conference Call (audio only)
Courtesy of pwinsider.com
George Barrios and WWE CEO Vince McMahon hosted an earnings conference call this morning. Here are some highlights:
Social media: a global success. Over 1 billion views on youtube, 50 million Facebook 'friends' and 18 million Twitter 'followers'.
Television: Superstars and NXT are lost revenue sources, even though they said that there is such "huge demand" for them. Tough Enough was very successful (nothing was said about a second season) and they are now developing Legends House and the new shows on YouTube.WWE.com Page views were down 22%.
WWE Network: No specific date was given for the launch, other than it would be this year. They are "bullish" on the network and want to make sure everything is right before they launch. It was noted that monetization will be better for it than other stars ups that they have done because they already own all the content that will be on the network. Vince McMahon noted that you don't want to start a network without a strong partner. $4 million has been budgeted for the project and most of that went to workers, some of whom have come in from the cable industry.
WWE Films: The company isn't ending the division, and they have new leadership and a different approach that they feel will work. They do have a specific time (which wasn't specified) to pull the plug if the division isn't working out, but they don't think it will get to that point. Vince said that they are in a better position than any studio to deliver product, and they will spend 15 to 25 million dollars on films this year for 4-8 films, many of which won't be released this year.
The launch of the network has been pushed back from Wrestlemania day in April, with no start date. The performance of this year's movie releases (The Reunion, See No Evil, Knucklehead and The Chaperone) were labeled a 'disappointment', underperforming previous projects and placing the entire future of the film division under review. Three other films (which do not feature WWE talent) have already been produced but their release dates are uncertain. A new deal with 20th Century Fox Home Video has been signed for three future movies, including another in the 'Marine' franchise.
I hope if the numbers aren't there, Vince won't force feed this network idea. It's highly unlikely that the red ink that has been bled from the WWE Films division will ever be made back, and its good to see that its future is being seriously reassessed. The television project could do far more damage ($45-50 million just to launch) and over the course of a few years its run rate could do unsustainable damage to P&L if the core business remains weak. At that point it could prove very difficult to rebound.
WWE's 2011 4th Quarter Earnings Report PDF
WWE's 2011 4th Quarter Conference Call (audio only)
Courtesy of pwinsider.com
George Barrios and WWE CEO Vince McMahon hosted an earnings conference call this morning. Here are some highlights:
Social media: a global success. Over 1 billion views on youtube, 50 million Facebook 'friends' and 18 million Twitter 'followers'.
Television: Superstars and NXT are lost revenue sources, even though they said that there is such "huge demand" for them. Tough Enough was very successful (nothing was said about a second season) and they are now developing Legends House and the new shows on YouTube.WWE.com Page views were down 22%.
WWE Network: No specific date was given for the launch, other than it would be this year. They are "bullish" on the network and want to make sure everything is right before they launch. It was noted that monetization will be better for it than other stars ups that they have done because they already own all the content that will be on the network. Vince McMahon noted that you don't want to start a network without a strong partner. $4 million has been budgeted for the project and most of that went to workers, some of whom have come in from the cable industry.
WWE Films: The company isn't ending the division, and they have new leadership and a different approach that they feel will work. They do have a specific time (which wasn't specified) to pull the plug if the division isn't working out, but they don't think it will get to that point. Vince said that they are in a better position than any studio to deliver product, and they will spend 15 to 25 million dollars on films this year for 4-8 films, many of which won't be released this year.
