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July 11, 2005 Observer Newsletter: Bad WWE earnings report, Pride Critical Countdown


Despite the addition of four more PPV events and huge increases in international business, World Wrestling Entertainment actually declined in both revenue and profit for the fiscal year that ended on 4/30.

In the company's earning report released on 6/30, the company grossed $365,431,000 in revenue, its lowest figure since 1998-99, and earned $39,147,000 in profits. From a pure wrestling standpoint, it would be the second least profitable year since the boom that started in 1998-99, but with no outside money losing businesses dragging down the bottom line, it was actually fifth most profitable year in company history. In actuality, the company's actual money declined from last year, because $33 million plus went to dividends and $28,340,000 was spent on production of two movies, which won't be listed on the current books until 2007, when revenue from those movies starts coming in. A similar situation will occur the coming year, with at least $20 million, and likely more, depending upon how many movies the company produces over the next fiscal year.

There are also another $5.9 million not on the current year books in accrued expenses and liabilities, and another $2.2 million that is on the books in income that the company is scheduled to receive (not including PPV revenue that always comes late) but has been deferred and thus they don't have it currently.

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