STAMFORD Conn. Dec. 1 2005 – World Wrestling Entertainment Inc. (NYSE:WWE®) today announced financial results for its second fiscal quarter ended October 28 2005.  Revenues totaled $88.9 million as compared to $83.9 million in the prior year quarter and operating income was $18.9 million as compared to $4.1 million in the prior year quarter. The Company reported net income of $11.7 million or $0.17 per share as compared to $4.4 million or $0.06 per share in the prior year quarter.  

Operating income in the current quarter includes approximately $3.4 million in positive legal settlements.  EBITDA was $21.7 million in the current quarter as compared to $7.2 million in the prior year quarter. 

“In addition to excellent operating results the quarter was marked by the successful move of Monday Night RAW® to USA Network ” stated Linda McMahon CEO.  “Thanks to an integrated marketing campaign and the dedication of our loyal fans we achieved a 4.7 average household rating for our inaugural homecoming show which was the top rated basic cable entertainment telecast for the month of October.  Also in the quarter we successfully transitioned to Friday Night SmackDown® enabling UPN to reach new key demographics on Fridays.  Both of our television partners have been very pleased as are we with the results of these programming moves.”

Mrs. McMahon continued “The operating results for the quarter reflect another strong quarter for this fiscal year. Our Pay-Per-View buys in the quarter exceed last year’s buys despite having only three events this quarter as compared to four events last year.  Additionally revenues in all of our Branded Merchandise businesses are ahead of the prior year quarter with Home Video and Licensing showing the largest percentage gains.”

Results By Business Segment for the 2nd Quarter

Live and Televised Entertainment

Revenues from the Company’s Live and Televised businesses were $60.0 million for the current quarter as compared to $66.8 million in the prior year quarter.

• Pay-Per-View revenues were $18.8 million versus $18.5 million in the prior year quarter.  There were three Pay-Per-View events produced in the current quarter as compared to four events in the prior year quarter.  

We will produce 16 pay-per-view events in fiscal 2006 as compared to 14 events in fiscal 2005. The details for the number of buys (in 000’s) are as follows:

Live Event revenues were $13.0 million as compared to $20.1 million in the second quarter of last year.  This decrease is primarily due to fewer international events in the current quarter.

• There were 78 events including 2 international events during the quarter as compared to 83 events including 15 international events during the same period last year. 
• The average attendance at our North American events was approximately 4 300 as compared to approximately 3 800 in the prior year quarter.
• The decrease in revenues is attributable to fewer international events which generate significantly more revenue per event than our North American events due to the combination of higher average attendance and higher average ticket prices.  The 15 international events held in the year ago quarter had average attendance of 9 500 and an average ticket price of approximately $70.00 resulting in an average gross of approximately $670 000.  This compares to an average gross per North American event of approximately $150 000 in the current quarter. 
• The lower number of international events in the quarter is simply the result of tour scheduling as we performed 15 shows across Europe during the month of November.

• Television Advertising revenues were $7.7 million as compared to $9.8 million in the prior year quarter.  This decline was primarily due to the change in the television distribution with USA Network which became effective in October 2005.  Due to this change we no longer participate in domestic advertising sales resulting in an overall decline in advertising spots sold during the current quarter.

• Television Rights Fees revenues were $20.4 million as compared to $18.4 million in the prior year quarter. The increase was due primarily to approximately $1.4 million of additional international rights fees primarily from India Japan South Korea and Italy.

Branded Merchandise

Revenues from the Company’s Branded Merchandise businesses were $28.9 million versus $17.1 million in the prior year quarter.

• Merchandise revenues were $5.0 million as compared to $3.9 million in the prior year quarter. This increase in revenues is primarily driven by our WWE Shop website with the number of orders more than doubling from the prior year quarter from approximately 15 000 orders to approximately 36 000 orders.
• Home Video net revenues were $11.9 million as compared to $4.5 million in the prior year quarter. The increase was due in part to an increase of approximately 0.2 million gross units sold and an increase in the average sales price of our DVDs of approximately $5.00 per unit due to the release of several higher priced titles in the quarter.  These higher priced units included our WrestleMania® Anthology box sets and several multi-disc titles.  Other successful titles released in the current quarter included Tombstone: The History of the Undertaker which sold approximately 155 000 gross units and The Self Destruction of the Ultimate Warrior which sold approximately 118 000 gross units.

• Licensing revenues were $6.4 million as compared to $3.8 million in the prior year quarter. The increase was generated by the sales in the toy category and the continued growth in our international markets.

• Digital Media revenues were $2.3 million as compared to $1.8 million in the period year quarter.  The increase was primarily driven by additional advertising sales on our website.

Profit Contribution (Net revenues less cost of revenues)
Profit contribution for the quarter was $41.6 million as compared to $31.4 million in the prior year quarter.  Total profit contribution margin was approximately 47% for the current quarter as compared to 37% for the prior year quarter.

The profit contribution margin for the Live and Televised businesses was approximately 43% for the current quarter as compared to 34% in the prior year quarter.  This increase reflects increased revenue in the higher margin Pay-Per-View and Television rights fees business units.

The profit contribution margin for the Branded Merchandise businesses was approximately 55% for the current quarter as compared to 50% in the prior year quarter.   The increase is due primarily to improved margins in the home video business reflecting an increase in the average sales price per unit in the current quarter and increased revenues from our licensing business.

Selling general and administrative expenses
SG&A expenses were $18.8 million for the current quarter as compared to $22.9 million in the prior year quarter.  Included in the current quarter were positive legal settlements of approximately $3.4 million.  Excluding this item SG&A expenses decreased by approximately $0.7 million.

Summary Results for the Six Months Ended
Total revenues through the first six months of fiscal 2006 were $182.7 million as compared to $165.4 million in the prior year period. Operating income for the current period was $34.7 million versus $15.4 million in the prior year period.  Net income was $22.9 million or $0.33 per share as compared to $12.1 million or $0.17 per share in the prior year period.  EBITDA was $40.2 million for the first six months of fiscal 2006 as compared to $21.3 million in the prior year period.  As discussed above current year operating income includes approximately $3.4 million in positive legal settlements.

Cash Flows
Cash flows provided by operating activities were $20.1 million in the current quarter.

Fiscal 2006 Outlook
Based on our results which exceeded our plan we have increased our full year forecast as follows:  revenues for fiscal 2006 of between $370.0 and $385.0 million EBITDA of between $60.0 and $65.0 million and income from continuing operations of between $35.0 and $40.0 million or $0.50 to $0.55 per share on a diluted basis.

Note: World Wrestling Entertainment Inc. will host a conference call on Thursday December 1 2005 at 11:00 a.m. ET to discuss the Company’s second quarter earnings results for fiscal year 2006.  All interested parties can access the conference call by dialing 800-894-5910 (conference ID: WWE).  Please reserve a line 15 minutes prior to the start time of the conference call.  A presentation that will be referenced during the call can be found at the Company web site at corporate.wwe.com.  A replay of the call will be available approximately three hours after the conference call concludes and can be accessed at corporate.wwe.com.

World Wrestling Entertainment Inc. (NYSE: WWE) is an integrated media and entertainment company headquartered in Stamford Conn.  Additional information on the Company can be found at wwe.com and corporate.wwe.com.  

Trademarks:  The names of all World Wrestling Entertainment televised and live programming talent names images likenesses slogans and wrestling moves and all World Wrestling Entertainment logos are trademarks which are the exclusive property of World Wrestling Entertainment Inc.  All other trademarks are the property of their respective owners.

Forward-Looking Statements: This news release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995 which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for live events broadcast television cable television pay-per-view Internet entertainment professional sports and licensed merchandise; acceptance of the Company’s brands media and merchandise within those markets; uncertainties relating to litigation; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; risks relating to maintaining and renewing key agreements including television distribution agreements; and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated.