Bad News For WWE Revenue - Expected To Report A Net Loss Of $8.6 Million

WWE is scheduled to report 2011 fourth quarter earnings today and it isn't good news. The company is expected to report a loss of $8.6 million (12 cents per diluted share) driven by higher costs. In comparison, the company had a net income of $8.1 million or 11 cents per share in the fourth quarter of 2010. Total revenue fell 7.8% to $112.9 million from the year-earlier quarter. This is short of the average revenue estimate of $120 million.

“In 2011, we evaluated several paths for creating new programs and distributing all of our content in a way that optimizes its value. Executing this strategy effectively, including the potential creation of a WWE Network, has the power to transform our business,” stated Vince McMahon, Chairman and Chief Executive Officer. “While we made significant progress toward this objective, our fourth quarter and full year results were impacted primarily by three items: significant non-cash film impairment charges stemming from the weak performance of our movie releases, strategic decisions to withhold several hours of previously licensed television content for distribution on other platforms, and initial start-up operating expenses associated with our emerging content and distribution strategy. Regarding the first item, we have taken several measures to improve the profitability of our movie business. And, regarding the other items, we believe that our ongoing investment to expand and maximize the value of our content is the most potent approach for driving our future earnings.”

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WWE will issue a press release detailing earnings later today and will host a conference call at 11 AM EST with investors.

  • Logan_Walker

    i would not like to be on that call

  • Bault16

    Dixie wins again

  • Fernando

    I'm afraid these results will make a perfect excuse to fire a pretty big amount of workers (both in-ring and office). I hope they don't, though, but as we say here, "think wrong and you'll be right".

  • Kleck

    You know, the movies really were not that good…

  • Wwe4L76

    Why cant wwe just be about Wrestling 🙁 make a wich etc. Is good, but films, get in a lot of selebs etc destroys it for me. Know many people that has stoped watching wwe because of this

    • Jeremiah

      Couldn't agree with you more!

      • Wwe4L76

        Thank you

  • Jeremiah

    Wwe movies are terrible to begin with. I've had a problem with watching a wrestler act in a movie, and then turn around and watch him/her in the ring. Just stick to wrestling for the love of God! There is so much wrong with wrestling today, I could go for hours writing about it.
    There are alot of reasons why WWE lost that much money, and it has nothing to do with the wrestlers. It is the horrible creative team they have. I remember 12 yrs ago WCW crashed and burned due to terrible creative decisions, and it almost seems to me the same writers are now working for Vince. They need to expand more on what CM Punk did last summer. That was edgy! They have none of that 2day, and that is a huge problem. Y2J return has not lived up to my expectations. All smart wrestling fans know that Punk is going to win @WM28. Almost every outcome to every single match is completely obvious these days. No shock value anymore. The whole angle with Punk/Laurinitis would have had been more interesting to me if Punk was screwed out of the title like they were teasing. But that too fell through the cracks.