Due to an increase in international business, World Wrestling Entertainment was off to a strong start in the first quarter of its fiscal year, which the company readily admits will become rockier on the bottom line due to the new USA Network deal, over the final two quarters.
For the months of May through July, the company took in $93,812,000 and ended with $11,178,000 in profit, according to its quarterly investment releases and conference on 9/7, hosted by Linda McMahon. In comparison to the same months last year, the numbers were $81,551,000 in revenues and $7,757,000 in profits. Most of the profit increases were due to the nature of the schedule where the Backlash show, which last year occurred on the final quarter of the 2004-05 books last year, figures into this year, as that's $2.1 million in before tax profits (before tax profits were $11,229,000 last year quarter and $15,800,000 this year quarter).
The remaining $1.5 million difference is due to a combination of great DVD sales (particularly Wrestlemania 21) and tremendous overseas licensing, particularly in Italy. In addition, because of strong Vengeance and ECW One Night Stand PPV shows in June, PPV was up. The total profit margin increase from the four shows vs. the same four shows last year (Judgement Day, One Night Stand/Bad Blood, Great American Bash and Vengeance) was $700,000 in the end, so that was half the difference right there.