WWE's business decline, which has been ongoing for over a year now, is really starting to show, as the company has sent out a warning to investors that they are looking at a $3 million dollar loss for the 2nd quarter of 2002. Below is the official press release sent out by WWE: ---------------------------------------
STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 14, 2002--As part of its ongoing business operations, World Wrestling Entertainment, Inc. (NYSE: WWE - News) today announced further guidance for its second fiscal quarter ending October 25, 2002 and its fiscal year ending April 30, 2003.
The Company anticipates that revenues for the quarter will be approximately $90 million and that earnings before interest, taxes, depreciation, amortization and other charges (EBITDA) will be approximately $4 million.
Attendance and television ratings are expected to be in line with those in the prior quarter. Pay-per-view buys are projected to be approximately 950,000 buys.
Selling, general, and administrative expenses are forecast to be approximately $25 million which reflects the favorable impact of the Company's cost control programs.
Simultaneously with this release, the Company filed an 8-K which reported the settlement of its litigation and buyout of all existing contractual agreements with William Morris Agency, Inc. The Company agreed to pay $13 million of which it had previously accrued $7 million. An additional charge of $6 million will be recorded in the live and televised business segment for the quarter. During the quarter, the Company received a favorable verdict in its litigation with Nicole Bass.
Primarily as a result of the charge in the quarter, WWE will report a net loss of approximately $3 million or $(0.05) per common share.
Based upon the projected results for the first half of the year, the Company expects that full year revenues will be approximately $385 million to $390 million. Operating income is forecast to be $27 million to $29 million which includes the six month net impact of its litigation settlements of $2.5 million. EBITDA is forecast to be approximately $42.5 million to $44.5 million. Selling, general, and administrative expenses are forecast to be approximately $100 million which reflects the favorable impact of the Company's cost control programs. Depreciation and amortization is forecast to be $13 million for the year. The Company expects to perform approximately 325 live events with attendance projected to be 2.0 million for the year. Total pay-per-view buys are projected to be about 5.4 million.
This guidance is subject to various risks and uncertainties as contained within the Company's filings with the Securities and Exchange Commission.
"Oh, i'll never understand this emptiness...but I'll never really try and understand, I guess." - Whiskeytown, Sit and Listen to the Rain
WWE needs to scale down their product, their lockeroom and their venue visits. Wrestling is a trend that picks up every few years, I wouldn't mind a scaled down product, as long as they realize WHEN to go big again.
Plus, I don't think any one storyline, wrestler, angle, match can MAKE the company. Period. There's no one answer to how to get back the fans and make the money, no matter what anyone thinks the answer may be. There's many problems right now, and I think it'd be too easy to point the finger in the same directions everyone always points them, which would be the creative and talent (me, I think the business side, and everything else needs to be reevaluated).
"WHO WRITES THIS CRAP!?" -10/7/02 The night Kane was announced a murderer.
"Pootie Tang? More like Dootie Tang!" -Chris Rock
One word: BUCKEYES! With that being said, BLAM! In your face!
Since I'm now getting this show through the miracle of WPIX-DTV2, I figured I'd give you a quick and dirty recap. Not sure how often I'll do this, but I'll try if I'm home on Saturday night if there's interest.