WWE to lose $3 Million in the 2nd qrt this year

[Guest RepoMan]

WWE SAYS THEY WILL LOSE THREE MILLION DOLLARS IN THE SECOND QUARTER THIS YEAR

 

by Dave Scherer Updated: 10/14/2002 6:53:54 PM

 

 

WWE just sent out the following press release.

 

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.

 

World Wrestling Entertainment, Inc. (NYSE: WWE - News) is an integrated media and entertainment company headquartered in Stamford, Conn., with offices in New York, Los Angeles, Toronto and London and it entertainment complex, the World, in New York City's Time Square. Additional information on the company can be found at wwe.com and corporate.wwe.com. Information on television ratings and community activities can be found at parents.wwe.com.

 

Forward-Looking Statements: This news release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for live events, broadcast television, cable television, pay-per-view, Internet, food and beverage, entertainment, professional sports, and licensed merchandise; acceptance of the Company's brands, media and merchandise within those markets; uncertainties relating to litigation; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated.

 

 

 

--------------------------------------------------------------------------------

Contact:

World Wrestling Entertainment, Inc.

Media:

Gary Davis, 203/353-5066

or

Investors:

Thomas Gibbons, 203/328-2576

 

 

Source 1wrestling

 

Is it time to really worry yet? I know the biz has been down, but I've always thought WWE would be atleast breaking even. I hope Vince has some emergency dough.

[Guest snowfan]

Hehe....

 

The con is on....Vinny will own 90% of the shares for an 8th what he was paid for them initially.

[Guest Akeem]

This is what I predicted before in an earlier thread. The WWE will continue to lose money until they GET RID of HHH and Undertaker. They are holding people down, so no guys can EVER develop into future main eventers. Brock Lesnar is the only hope, because he can do whatever he wants without getting severely punished because he is #1 in WWE's eyes for top guys of the future. Therefore Lesnar HAS to take out the Undertaker at No Mercy. Take out his knees. Send him into retirement. This is for the good of the business and for the good of Brock Lesnar as well, so he is chicken if he doesn't do it.

[Guest Midnight Express83]

Vince is losing money, so things will change real soon.

 

He normally doesn't give a shit, but mess with his money and damn, thats when the shit hits the fan.

[Guest HartFan86]

Eh, at least Vince could say his company isn't the only one shitting the bed....all kinds of other coporation's quarter reports are just awful.

[Guest bps "The Truth" 21]

Why can't anyone tell me why the fact that last year Vince was worth 1.1 BILLION dollars...and this year he was worth like 467 Million or something, isn't a big deal?

 

Between the XFL and the WWE Vince is losing a ton.

[Guest cynicalprofit]

Cant vince as the owner of a publicaly traded company not own more then 50% of the stock? Isnt that illegal.

[Guest nikowwf]

Its a time to panic cause the product sucks. 3mm in a quarter they took a big expense for an advertising contract they needed to get out of isn't the end of the world. They could in theory absorb that kind of loss for about 70 years before they ran out of cash.

 

Im not sure at this point what they would consider a panic sign. Look how shitty things are, and look at what they gave us last night? If thats there reaction, we are all in trouble.

 

niKO

[Guest cdstunner66]

Cant vince as the owner of a publicaly traded company not own more then 50% of the stock? Isnt that illegal.

It's a matter of the share classes. Vince owns one type of share that makes for majority ownership of the company. The shares they sold to the public are a different class. They have less voting right and a different book value. Even if there were only one class, it is perfectly legal for a person to own majority shares. I think the McMahons collectively own something like 51% with the rest going to the public. As long as their ownership stays at that level or above there's no chance of them being bought out.