The figures beat analysts’ estimates, showing growth in Hasbro operating profit, net earnings and EBITDA, with net revenue increasing by 1% to $1.34b
During the second quarter, Hasbro’s gross revenue grew by 4%, although that figure was impacted by the unfavourable $32.7m impact of foreign exchange. Revenue grew in Franchise Brands, Partner Brands and Emerging Brands, while Consumer Products revenue (the licensing side of Hasbro’s business) was up 7%. Wizards of the Coast, and Digital Gaming segment revenue grew by 3%. Top brand performances included Magic: The Gathering, Peppa Pig, Play-Doh and My Little Pony.
Commenting on the results, Hasbro chief executive Chris Cocks said: “The Hasbro team delivered strong second quarter results, driving mid-single digit revenue growth absent foreign exchange. Wizards of the Coast turned in its biggest quarter ever, led by 15% growth in tabletop gaming and 11% growth in Magic: The Gathering across all platforms. We also significantly enhanced our digital play and direct-to-fan capabilities with the acquisition of D&D Beyond, which will serve as an important growth driver for Hasbro’s industry leading fantasy gaming portfolio.
“We are making significant progress in our strategic plan review and are identifying and realizing cost savings across the business. Our teams are driving focus and scale in gaming, multi-generational brands and direct to consumer. Backed by Hasbro’s unmatched portfolio of brands and brand-building capabilities, we have confidence in the strength of our initiatives for the second half and we are positioned to deliver profitable growth and long-term shareholder returns.”
The second half of 2022 features significant new launches for Nerf with the Nerf Pro GelFire and Elite2.0 Motoblitz, while for Gaming, key releases include Wordle: The Party Game and Magic: The Gathering releases Dominaria United, Unfinity and Universes Beyond: Warhammer 40,000.
In addition, Hasbro will release products for Marvel Studios’ Black Panther: Wakanda Forever and the Star Wars series Obi-Wan Kenobi streaming on Disney+, while the company’s pre-school range will expand with new Peppa Pig, PJ Masks Marvel’s Spidey and His Amazing Friends collections.
On the entertainment side, key second half 2022 deliveries are expected to include Peppa Pig and PJ Masks to SVOD platforms in China, as well as deliveries of My Little Pony: Make Your Mark and Power Rangers Dino Fury content to Netflix.
According to Chris Cocks, Hasbro is yet to see any pushback from consumers over price hikes and could raise rates further if costs increase: “Toys tend to be resilient in a recession,” he told Reuters. “Parents want to keep investing in their children, and toys and games are good entertainment value for the money.”
