NEW YORK (CelebrityAccess MediaWire) — CKX, Inc. has reported their financial results for the third quarter and nine months ended September 30, 2010 and they needed some red ink to do it.
CKX reported that Q3 revenue decreased $7.3 million to $80.1 million, a decrease of 8.3% from the prior year period. The company attributed this loss to the impact of a second season of their dance show "So you think you can dance."
"American Idol" revenue, the company's largest earner, was also down $1.1 million, due primarily to decreased revenue from sponsorship deals, but offset by higher touring revenue. Revenue at the Presley Business grew $1.1 million, or 7.8%, due to higher royalty revenue, including revenue from the Viva ELVIS Cirque du Soleil show in Las Vegas which opened in February.
CKX also reported an operating income of $1.5 million, a decrease of $9.5 million from 2009.
Commenting on the results, Michael G. Ferrel, Chief Executive Officer, said, "We are encouraged by our third quarter results across the Company. The announced changes being implemented for the 2011 season of American Idol have been well received. So You Think You Can Dance completed its seventh season in August and has been picked up for another season in 2011. We have also made major progress with our restructuring of 19 Entertainment, which is increasing our focus on our hit properties while significantly reducing spending on unproductive development projects and general overhead. Although our three-month and nine-month results were negatively impacted by restructuring costs, the benefit of $20 million in annual cost savings that we have implemented has already begun to positively impact our operating results in the third quarter of 2010." – CelebrityAccess Staff Writers