February 8, 2018
Consumer demand for World Wrestling Entertainment DVDs is waning.
WWE home entertainment reported fourth-quarter (ended Dec. 31, 2017) operating loss of $700,000 compared to operating income of $1.9 million during the previous-year period. It was the unit’s first fiscal loss.
Revenue plummeted almost 80% to $900,000 from $4.2 million last year. For the fiscal year, revenue dropped 35% to $8.6 million from $13.1 million.
Operating income for the year declined 70% to $1.6 million from operating income of $5.3 million in 2016.
Meanwhile, digital media sales of WWE product generated operating income of $5.8 million, up 205% from $1.9 million in sales in the previous-year period. Revenue for the year increased 49.5% to $12.8 million from $8.5 million in 2016.
Separately, WWE Network, the standalone SVOD service, ended the quarter with 1.48 million subscribers, up less than 5% from 1.40 million.
Overall, WWE operating income increased 36% to $75.6 million from $55.7 million on record revenue of $801 million, compared to $729.2 million in revenue in 2016.