World Wrestling Entertainment 3Q profit slides

The Associated Press
October 31, 2013

NEWS: World Wrestling Entertainment Inc. posted a 31 percent drop in third-quarter profit, as higher expenses outweighed a 9 percent revenue increase. Higher-than-expected revenue, however, sent stock to its highest point in more than two years.

DETAILS: The company said its earnings declined due to higher movie losses because of a charge, as well as reduced profits from its pay-per-view, video game and home entertainment businesses.

NUMBERS: Net income fell to $2.4 million, or 3 cents per share, from a profit of $3.5 million, or 5 cents per share, in in the 2012 third quarter. Adjusted operating income was $10.2 million, or 9 cents per share, and excluded an impairment charge of $7 million.

Revenue rose to $113.3 million for the three months ended Sept. 30, from $104.2 million last night.

Analysts, on average, were expecting revenue of $104.8 million, according to a poll by FactSet.

STOCK: Shares of the Stamford, Conn.-based company rose 51 cents, or 4.3 percent, to $12.35 in morning trading. Earlier, the stock hit $12.40, its highest point since April 2011.