In the latest set of results from Hasbro, the company points to “solid progress in our turnaround efforts” in the first three months of the year.
In the first quarter of 2024, overall revenue for Hasbro Inc declined by -24%, driven primarily by the sale of the eOne film and television business; excluding this divestiture, revenue declined by -9%, with growth in the Wizards of the Coast and Digital Gaming segment (+7%) and Entertainment (+65%) offset by declines in Consumer Products (-21%).
Adjusted operating profit of $148.6m (+$101.4m compared to the same period in 2023) and adjusted operating margin of 19.6% (+14.9 points compared to last year) were driven by what Hasbro terms a “favourable business mix, supply chain productivity and reduced operating costs.”
Within the consumer products segment, Furby continued to perform well over the quarter, supported by the launch of Furblets in December 2023.
Revenue in the Wizards of the Coast and Digital Gaming Segment increased by +7%, driven by an increase in Licensed Digital Gaming revenue from Baldur’s Gate 3 and Monopoly Go! Tabletop revenue increased by +5%, with growth attributed to Magic: The Gathering shipment timing to support the Outlaws of Thunder Junction release, as well as strong demand for the Universes Beyond Fallout Commander set.
In the Entertainment Segment, revenue declined by -85% as a result of the sale of eOne Film and TV in December 2023. Without the impact of the sale, revenue grew by +65%, driven by the delivery of Peppa Pig content.
Hasbro owned inventory in Q1 was down 53% versus last year, including a 57% decline in Consumer Products inventory.
Commenting on the results, Chris Cocks, Hasbro CEO, said: “The first quarter was a good start to the year; we are continuing to see the results of our transformation work. Performance from our licensing portfolio shows the strength of our brands and we continue to fuel innovation in games and toys as we expand our reach across play patterns to fans of all ages.”
Gina Goetter, Hasbro CFO, added: “We made solid progress in our turnaround efforts in the first quarter. We landed revenue where we expected and drove significant operating profit improvement, led by our operational excellence programme and improved business mix. We remain on track for our full-year commitments.”
