Total revenues for the year ended December 31, 2014 increased 7% to $542.6 million as compared to $508.0 million in the prior year driven by growth in North America. North American revenues increased 9%, or $34.5 million, driven by the ramp up in WWE Network subscription revenue and the escalation of television rights fees as reflected in the Media Division. Revenues from outside North America were flat to the prior year as contractual increases in the Company’s international television agreements were offset by the impact of staging 11 fewer events in international markets.
For the current year, the Company reported an Operating loss of $42.2 million and a Net loss of $30.1 million, or $0.40 per share as compared to Operating income of $5.9 million, and Net income of $2.8 million, or $0.04 per share, in the prior year. The Company also reported an OIBDA loss of $15.5 million for the current year as compared to OIBDA of $30.4 million in the prior year.
Excluding items that impacted comparability on a year-over-year basis, the Company reported an Adjusted Operating loss of $34.9 million, an Adjusted OIBDA loss of $11.6 million and an Adjusted Net loss of $22.8 million, or $0.31 per share compared to Adjusted Operating income of $14.2 million, Adjusted OIBDA of $38.7 million and Adjusted Net income of $8.2 million, or $0.11 per share, in the prior year.
WWE Network surpassed 1 million subscribers in January 2015, just 11 months after launch. Subscriber growth was driven by a successful free November promotion, the launch of the service in the UK and the strength of the Company’s Royal Rumble event. Over the year, key brand metrics remained strong. Raw and SmackDown TV ratings increased 2% and 3%, respectively. Consumption of WWE content on YouTube increased more than 80% to approximately 3.9 billion video views and WWE’s social media presence grew more than 80% and recently surpassed 450 million followers.
Comparability of Results
For the full year 2014, results included $1.5 million in film impairment charges taken in the fourth quarter primarily related to the expected performance of the movie, Oculus, which was released theatrically in April 2014. Results also included a one-time pre-tax restructuring charge of $4.2 million comprised of severance and other costs ($2.4 million recorded in operating expenses and $1.8 million in depreciation expense), a $4.0 million impairment of an equity investment, and a $1.6 million adjustment to reduce the carrying value of the old corporate aircraft to its estimated fair value in conjunction with the sale of this asset, which occurred during the third quarter 2014. For the full year 2013, results included $11.7 million in film impairment charges and an approximate $3.4 million positive impact from the transition of the Company’s video game business to a new licensee in 2013.
In order to facilitate an analysis of financial results on a comparable basis, the Company’s results have been adjusted where applicable to exclude these items. (See Schedule of Adjustments in Supplemental Information in the Company’s fourth quarter earnings release dated February 12, 2015.)
Non-GAAP Measures: We define OIBDA as operating income before depreciation and amortization, excluding feature film and television production asset amortization and impairments. OIBDA is a non-GAAP financial measure and may be different than similarly-titled non-GAAP financial measures used by other companies. A limitation of OIBDA is that it excludes depreciation and amortization, which represents the periodic charge for certain fixed assets and intangible assets used in generating revenues for the Company’s business. OIBDA should not be regarded as an alternative to operating income or net income as an indicator of operating performance, or to the statement of cash flows as a measure of liquidity, nor should it be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. We believe that operating income is the most directly comparable GAAP financial measure to OIBDA.
Adjusted OIBDA, Adjusted Operating income, Adjusted Net income and Adjusted Earnings per share exclude certain material items, which otherwise would impact the comparability of results between periods. These items include, but are not limited to, non-cash impairments of film, intangible and fixed assets, gains and losses on asset sales, as well as material restructuring charges. The adjusted measures should not be considered as an alternative to net income, cash flows from operations or any other indicator of WWE’s performance or liquidity, determined in accordance with U.S. GAAP.
For more information on WWE financial results by fiscal year or quarter, please visit the Investor Relations section of our website.