WWE 3Q profit falls, cites losses on movies
caines | 11/4/2011, 12:33 p.m.
STAMFORD, Conn. (AP) _ World Wrestling Entertainment Inc., a producer of televised wrestling matches and related programs, said Thursday its third-quarter profit fell 26 percent, pulled down by losses related to three of its recently released movies. Stamford, Conn.-based WWE reported net income of $10.6 million, or 14 cents per share, for the three months ended Sept. 30, down from $14.3 million, or 19 cents per share, a year ago. The recent quarter's results included $5.1 million in film impairment charges related to lower-than-expected home video sales of the movies Inside Out, The Chaperone, and Knucklehead. The films were produced by WWE and feature its wrestlers. Excluding that charge, the company posted an adjusted profit of $14.1 million, or 19 cents per share. Analysts, on average, expected earnings of 15 cents per share, according to a FactSet poll. The estimates typically exclude one-time items. Revenue edged down to $108.5 million from $109.6 million, matching analysts' estimates Revenue from the company's live and televised entertainment division, which accounts for the bulk of its business, rose 5.8 percent to $78.1 million on increases in revenue from pay-per-view programs and fees for TV rights. WWE shares rose 13 cents to $10.44 in midday trading Thursday.