Revenue grew in all major operating segments for 2017, resulting in full-year net revenues of $5.21b.
Hasbro has reported financial results for the full-year and fourth quarter 2017. Net revenues for the full-year 2017 increased 4% to $5.21b versus $5.02b in 2016. 2017 net revenues include a favourable $79.2m impact from foreign exchange.
2017 revenues grew in all major operating segments: 5% in the US and Canada; 2% in the International market and 8% in the Entertainment and Licensing categories.
Full-year 2017 Franchise Brand revenues increased 10% to $2.57b, driven by revenue growth in Transformers, Nerf, Monopoly and My Little Pony.
Partner Brand net revenues decreased 10% to $1.27b. An increase in Beyblade, Marvel and Sesame Street revenues was offset by a revenue decline in Star Wars, and, to a lesser extent, declines in Yo-Kai Watch and Disney Frozen. Hasbro Gaming net revenues grew 10% to $893m, while the company’s total gaming category grew 8% to $1.50b, including revenue growth from Monopoly. Emerging Brands net revenues increased also 2% to $477.2m, driven by strong growth in Baby Alive and Furreal Friends.
However, Hasbro also revealed that its revenues in the fourth quarter fell nearly 2% from a year ago to $1.6b, missing analysts’ estimates for a rise to $1.72b. Hasbro shares fell more than 4% in pre-market trade.
Chief executive Brian Goldner commented: “Our strong performance ranked Hasbro No. 1 across the G11 markets for the full-year 2017. In the fourth quarter, Hasbro Franchise Brand revenues increased 11%. However, overall consumer demand slowed in November and December both for the industry and for Hasbro. A decline in Partner Brands and Europe revenues resulted in us not meeting our fourth quarter revenue expectations. Looking ahead, our innovative lines are supported by robust storytelling and digital initiatives that position us well for 2018 and beyond.”
Deborah Thomas, Hasbro’s chief financial officer, added: “Over the past five years, we added over $1b in revenues to our top line, growing revenues four consecutive years, while meaningfully increasing operating profit, net earnings and generating significant cash flow. Hasbro is in a strong financial position with the cash and profitability to invest in growing our business for the long term.”