WWE has released their fourth quarter and full year earnings report for 2013, showing an operating loss of $12.2 million and a net loss of $7.9 as compared to positive income from the prior year quarter. The WWE Network was one of the reasons given (as seen below) for the fourth quarter losses. Interesting to note that total revenues were up from the previous year quarter.
Vince McMahon commented on the reports as well.
For those interested in reading the entire report, you can CLICK HERE. However, here are the opening few paragraphs that give a general overview:
WWE® Reports 2013 Fourth Quarter and Full Year Results
STAMFORD, Conn.–WWE (NYSE:WWE) today announced financial results for its fourth quarter ended December 31, 2013. Revenues totaled $118.4 million as compared to $115.1 million in the prior year quarter. Operating loss was $12.2 million as compared to income of $2.6 million in the prior year quarter. Net loss was $7.9 million, or $0.10 per share, as compared to income of $0.6 million, or $0.01 per share, in the prior year quarter. OIBDA in the fourth quarter 2013 decreased to a $5.6 million loss from income of $8.5 million in the prior year quarter.
The decline in OIBDA and Operating income was primarily attributable to increased investment in staffing, talent and marketing to support our strategic content initiatives, including the launch of WWE Network. Lower sales of new DVD releases and a corresponding shift in product mix to lower priced catalog titles, as well as compressed television production margins that derived from changes in the mix of programming also contributed to the year-over-year decline.
"During the past year, we laid the foundation for future growth and enhanced our brand strength," stated Vince McMahon, Chairman and Chief Executive Officer. "We have now announced the renewal of our television distribution agreement in the U.K., are continuing the negotiations regarding our domestic content, and are poised to launch our global WWE Network in the next few days. With preparations for WrestleMania 30 fully underway, we look forward to celebrating our enduring legacy and ushering in a new era as we blaze new trails in the media industry."
"As we prepared to transform our business, we invested in content production and talent. Although our earnings declined in 2013, our performance was in-line with our guidance, which targeted a range of OIBDA results, excluding film impairments, of $40 million to $50 million," added George Barrios, Chief Strategy & Financial Officer. "Regarding our domestic TV licensing agreements, we are now engaged with potential partners after exiting our exclusive negotiating period with NBCU. Based on our analysis of the value of comparable programs and our extensive research regarding consumer interest in WWE Network, we continue to believe that we can double or triple our 2012 OIBDA results of $63 million by 2015."