Despite a challenging year, the company says it is taking action to transform Hasbro and deliver profitable growth across all segments as well as build momentum in its innovation pipeline.
Hasbro has reported financial results for the fourth quarter and full year 2023. Full year revenue declined 15%, with growth in the Wizards of the Coast and Digital Gaming segment (+10%) more than offset by declines in the Consumer Products segment (-19%) and Entertainment segment (-31%).
Q4 revenue declined 23% with growth in the Wizards of the Coast and Digital Gaming segment (+7%) offset by declines in the Consumer Products segment (-25%) and Entertainment segment (-49%).
“Guided by our strategy of ‘Fewer, Bigger, Better’, we had important wins across both toys and games while making progress in our transformation during a challenging 2023,” said Chris Cocks, Hasbro chief executive officer. “Despite the macroeconomic backdrop, we are entering 2024 with a healthier balance sheet, a leaner cost structure and a diverse portfolio of industry-leading toy and game brands that support our capacity to invest in the business and maintain our commitment to returning cash to shareholders via our category-leading dividend,”
Chris added: “Our refreshed leadership team is bringing innovative new products to our fans. At the same time, we are taking the necessary actions to transform Hasbro and deliver long-term profitable growth starting with driving significant profit growth across our segments in 2024 and building momentum in our innovation pipeline between now and 2025.”
“2023 was a productive year for Hasbro, although not without some challenges.” added Gina Goetter, Hasbro chief financial officer. “As we navigated the current environment, we took aggressive steps to optimize our inventory, reset the cost structure and sharpen our portfolio focus on play with the eOne film and TV divestiture. Taken together, the actions throughout the full year have positioned the company for improved financial performance in 2024 and beyond. We are encouraged by our recent progress and remain laser focused on execution to deliver on our transformation objectives.”
In the Consumer Products Segment, revenue decreased by 19% driven by business exits, category trends and inventory management. Hasbro said there was growth in Transformers and G.I. Joe, and that Furby performed well.
The Wizards of the Coast and Digital Gaming Segment saw a revenue increase of 10%, driven by an increase in Licensed Digital Gaming revenue behind Baldur’s Gate III from Larian Studios and Monopoly Go! from Scopely, while Tabletop revenue increased 1% behind growth in Magic: The Gathering with a strong performance from the Universes Beyond Lord of the Rings: Tales of Middle-earth sets.
The Entertainment Segment experienced a revenue decline of 31% driven by lower Film and TV revenue due to the writers’ and actors’ strikes. Meanwhile, Family Brands revenue grew 6%.
