World Wrestling Entertainment (NYSE: WWE) reported Q4 earnings today, and they showed that this little media company isn't ready to submit yet. WWE generated $0.30 per share in net income, which represented growth of 36%. According to earnings.com, the street was figuring on $0.17 per share. Guess the street had better learn not to doubt Vincent Kennedy McMahon.

Nevertheless, all is not necessarily well with WWE. For one thing, the company has found that playing in the movie business is not as easy as it sounds. The WWE Films unit saw revenues of $3.1 million in the quarter but contributed nothing in terms of profit. WWE is recognizing revenues from films See No Evil -- which was distributed by Lions Gate (NYSE: LGF) in the summer of 2006 -- and The Marine, which was released by News Corp.'s (NYSE: NWS) Fox in the fall of 2006. Also, the pay-per-view buy rates could use some help, maybe some marketing muscle to get things back on track.

Still, free cash flow for the year saw a body-slamming jump to $79.6 million versus $26.2 million for 2006. That was enough to cover the dividend obligation -- and WWE actually pays a decent yield. Shares are up as I write this over 7%, and the volume is Hulkin' up as well. So, investors are clearly pleased. But, Mr. McMahon really better take a good, hard look at his film business and get some exciting projects into production -- I believe there is great potential for this segment over the long haul. Sure, the company isn't a Disney (NYSE: DIS) or Time Warner (NYSE: TWX), but it still is a fun way to play the media sector.

Disclosure: I own shares in Disney.