Source: Yahoo! Finance
HARTFORD, Conn. (AP) — World Wrestling Entertainment Inc. on Tuesday reported a nearly 6 percent increase in earnings for the eight-month period ended Dec. 31 even though profit from live and televised entertainment fell by $5 million.
WWE posted net income of $31.6 million, or 44 cents per share, up from $29.8 million, or 43 cents per share, in the 2005 period.
The Stamford-based company reported results for the eight-month transition period as it changes its financial reporting to a calendar-year basis.
Growth was led by live events, merchandise and home video businesses, Linda McMahon, WWE’s chief executive, said in a statement.
Revenue increased by 6 percent to $262.9 million from $247.7 million despite the absence of almost $14 million in domestic cable TV advertising.
TV advertising revenue was $4.5 million, down considerably from $19.8 million in 2005. WWE said the drop was due to a television distribution agreement with USA Network, effective in October 2005, under which WWE no longer participates in domestic TV ad sales. Revenue continues to include sales of advertising on Canadian TV programs.
Shares of WWe fell 5 cents to $16.35 on the New York Stock Exchange.
