Stamford's WWE, which produces wrestling events such as WrestleMania and television shows such as Raw and SmackDown, said Thursday that its second-quarter profit fell 17 percent as it booked costs for its planned television network, The Associated Press reports.
The company, formerly known as World Wrestling Entertainment Inc., said it earned $11.9 million, or 16 cents per share, for the three months ended June 30. That was down from $14.3 million, or 19 cents per share, a year earlier. Excluding $1.7 million in costs related to its potential network, WWE would have earned 17 cents per share in the latest period.
Revenue slipped less than 1 percent to $141.6 million as a 17 percent increase in pay-per-view buys offset a decline in video game sales.
North American revenue increased 2 percent, lifted by WrestleMania and the pay-per-view business. Revenue abroad declined 8 percent due to a decrease in WWE's live events and consumer products businesses, the company said.
Analysts had expected earnings of 15 cents per share on revenue of $141.8 million, according to FactSet.
Looking ahead, the company said 2012 earnings will grow 5 percent to 15 percent year-over-year.