World Wrestling Entertainment Inc. Q1 2009 Earnings Call Transcript

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2009-05-07 13:05:41.0

Tags: World Wrestling Entertainment Inc., Mattel Inc., Call Transcript, Earnings, Product Development, Financial Accounting, Benefits, Research & Development, Business Operations, Finance, Human Resources, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Richard Ingrassia – Roth Capital Partners.

Jared Schramm for Richard Ingrassia Roth Capital Partners

This is Jared Schramm filling in for Rich today. We're a little ways off on the handoff from JAKKS Pacific to Mattel on the toys section. Can you talk about what sort of expansion you can do with Mattel and how you plan to grow that segment of the business?

Vincent K. McMahon

I'll mention it and then we'll go to Donna who is really on the case. This is like night and day comparing JAKKS to Mattel, obviously, Mattel being to date. These people are really, really smart people and, as Donna's going to tell you, their approach to our product and the exploitation of it is nothing short of extraordinary.

The other thing about Mattel, which is important for us, is we're global they are, too. And it's not just what they're going to bring from a financial standpoint to the bottom line it's also the fact that they're a good partner. They're going to be a very, very good partner. And they have offices and they have people on the ground that can help us in markets where we don't at the moment, in terms of the overall business climate, political climate, you name it. So, we really know that they're going to be a partner, not just someone who benefits or we benefit from the bottom line.

Donna Goldsmith

Jared, the other thing I would add to that is that we have seen some of the early product development that Mattel is working on, and it's fabulous. They're going to expand the product line by hitting three segments, the collector business, which JAKKS had done a good job at, but Mattel is going to take it to another level.

They're going to hit the kids business, which is an area where JAKKS had not focused on. They're going to go for the 2 to 11, they're going to advertise on kid programming, which JAKKS had not done before. They're going to create products that are so different than what you've seen and they are going to have more articulation.

They are going to have sound and movement. They're going to do products besides the actions figures. They're going to do more additional product from role-playing to masks with championship belts. We are so excited for the array of product that they're going to do. And, of course, they will continue with the basic action figures, as well.

 

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