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News > Companies
WWF 1Q profit slammed
August 23, 2001: 11:06 a.m. ET

Lower revenue leads to profit drop, but gain from sale lifts EPS over target
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NEW YORK (CNNfn) - World Wrestling Federation Entertainment Inc. said Thursday its fiscal first-quarter profit was slammed by lower ratings and increased operating costs.

The Stamford, Conn.-based company earned just under $12 million, or 16 cents a share, for the quarter ended July 27, down from $16.3 million, or 22 cents a share, it earned from continuing operations a year earlier. But it beat the forecast of 10 cents a share of analysts surveyed by earnings tracker First Call.

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About half the profit -- $5.8 million, or 8 cents a share -- came from the revaluation and gain on the sale of its position in one of its licenses. Selling, general and administrative expenses were $25.6 million, up $5 million from a year earlier. The company cited increased overhead of its entertainment complex in Times Square in New York, higher advertising and promotion expenses, and increased consulting fees.

Revenue fell to $90.7 million from $101.9 million a year earlier. Most of the drop came from a 32 percent decline in branded merchandise revenue to $18.3 million from $26.7 million a year earlier. WWF said the decline was "principally due to a decrease in licensing revenues resulting from the timing of cash receipts." Revenue from live and televised entertainment slipped 4 percent to $72.4 million from $75.2 million.

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The company said ratings for its "Raw is War" and "SmackDown!" programs increased in the last four weeks, and that its July pay-per-view program had 70 percent higher revenue than the same event a year ago. But it gave no any specific earnings guidance in its earnings statement. graphic

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.