World Wrestling Entertainment Inc. Q4 2008 Earnings Call Transcript

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2009-02-24 13:29:16.0

Tags: World Wrestling Entertainment Inc., Call Transcript, Earnings, TVs, Tv & Home Theater, Media Center PCs, Personal Technology, Home Entertainment, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions). We’ll take our first question from the site of Richard Ingrassia – Roth Capital Partners

Richard Ingrassia – Roth Capital Partners

I think this may be a question for Linda, but for anyone who wants it. Obviously, I understand the reason for delaying the capital investment in the Media Center project, but what impact does that have, if any, on opportunities for revenue growth beyond 2009?

Linda McMahon

Well, what we have done is to carefully manage the expansion of our media facility, so that it doesn’t have any impact on the product that we’re delivering and getting to the marketplace. We’ve leased some outside space. We’ve expanded. We utilized and outsourced some of our production so that we’re not taking away from the quality of our productions. It’s harder. It’s more difficult, but I think we’re managing it well for the time being.

Richard Ingrassia – Roth Capital & Partners

Okay and then two more if I can. The WGN deal with the "Superstars" programming was, I think, a pretty impressive expansion of the franchise. It brought to mind the total exploitation opportunity, for lack of a better word. I mean, maybe on a scale of one to ten or if you don’t want to use a number just maybe give us some perspective. Where do you think you are in terms of fully exploiting the WWE assets on domestic TV?

Linda McMahon

Well, we now have Monday night covered, Tuesday night covered, with WGN we'll have Thursday night covered, with My Network TV we'll have Friday night covered, and we produce our Pay-Per-Views as being about 12 to 14 a year on Sunday nights, so we're really hitting really good nights of television.

I think that there is constant opportunity for WWE, with always on our website. We also have our 24/7 classics channel and our fan base, WWE Universe seems to have an insatiable appetite for our product. So as long as we have demand and we are continuing to produce quality products, which we are, we'll keep filling that pipeline.

Richard Ingrassia – Roth Capital Partners

Five days a week we could count on at least two more.

Linda McMahon

Well, they're open.

Richard Ingrassia – Roth Capital Partners

And then one last question, I guess for Donna, can you say a little about the status of the DVD distribution relationship with Genius?

 

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