WWE Company Profit Falls
WWE reported net income of $7 million, or 10 cents per share, compared with $14.7 million, or 21 cents per share during in the same period in 2006.
The blame for the falling profits seems to sit with the Benoit tragedy and recent criticisms against the WWE and its various policies. The request by Congress for the WWE to turn over information regarding drug tests on wrestling superstars also hit the WWE stock hard.
According to Forbes, Linda McMahon stated to analysts that the company has taken a strong stand against all drugs, including steroids:
"All of us at WWE were stunned and saddened by this horrific event," she said in a conference call. "We're committed to doing everything we can to helping our performers lead healthy lives."
The WWE said it took a $15.7 million charge related to the weak box office performance of "The Condemned," which starred wrestler "Stone Cold" Steve Austin. The film, which was panned by critics, took in $7 million.
WWE shares, after opening Thursday morning at a 52-week low of $14.52, rose 28 cents to close at $14.80.