World Wrestling Entertainment, Inc. (NYSE:WWE) shares fell Thursday after the company reported weak second quarter earnings, driven by decreased revenues partially impacted by recent changes to its talent base.
The provider of wrestling entertainment posted net income of $6.3 million, or 8 cents a share, compared with $19.9 million, or 27 cents a share, in the same quarter last year, and falling short of average analyst estimates of 14 cents.
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Revenues for the Stamford, Connecticut-based company were $106.8 million, down from $138.8 million a year ago, and missing the Street’s view of $109.3 million.
Increased revenues occurred in three of its four regions, with only the Europe, Middle East and African market posting a year over year loss.
The company’s live and televised entertainment as well as its revenues from pay per view were down from the prior year quarter, though that was affected by the impact of WrestleMania XXV, which occurred in the first quarter of this year as opposed to the second quarter a year ago.
“Our performance fell below management expectations as trends weakened in the latter part of the quarter,” said WWE CEO Vince McMahon. “Although we believe the continued softness in the economy played a part in our results, recent changes in our talent base may have also impacted key operating metrics, particularly domestic pay-per-view buys and live event attendance.”
McMahon said some of the negative impacts are viewed by the company as temporary, and noted they “remain confident” in their ability to address the challenges and cultivate consumer demand.