The company says the success of the Transformers spin-off Bumblebee boosted sales of its toys, sending its shares up 16%.
As reported by Reuters, Hasbro has announced surprise profits for Q1 2019, pointing to the success of the Bumblebee movie as a major factor for its turnaround in fortunes.
The company has been focusing on deals with production houses to boost sales of its action toys as it recovers from the impact of the liquidation of Toys R Us last year. Revenue from the company’s franchise brands segment, which includes Transformers and other long-running brands including Play-Doh and Monopoly, rose 9% to $393.6m in the quarter ended 31st March, far surpassing analysts’ average estimate of $361.7m.
Earnings of 21 cents per share also beat the consensus market expectation of an 11 cents per share loss as sales surged past expectations.
The company has also invested more money on virtual games as kids spend more time on electronic devices, including shifting its Magic:The Gathering collectible cards into virtual form.
Revenue from the company’s entertainment, licensing and digital business jumped 24% to $92m, primarily due to a new e-sports programme based on the online version of the card game.
The results were a major recovery from Hasbro’s $112.5m, or 90 cents per share, loss a year earlier, when it was hammered by $61m in costs caused by the bankruptcy of Toys R Us. The company also cut its selling, distribution and administrative costs by about 31% year-on-year to $225.3m.
Net revenue rose 2.3% to $732.5m, compared with expectations of a near 8% fall.
