Hasbro Reports Revenue Decline in Q4

Full-year revenues at Hasbro fell by 9 percent to $5.9 billion, while its fourth-quarter results were down 17 percent year-on-year to $1.7 billion.

“As we announced previously, our fourth quarter and full-year 2022 results came in below our expectations,” said Chris Cocks, CEO. “Despite this, we delivered our first billion-dollar brand in Magic: The Gathering and another record year at Wizards of the Coast and Digital Gaming, we grew key investment areas including licensing and direct to consumer, and we improved adjusted operating profit margin. We also reduced owned and retail inventory levels from the third quarter peak and we are working to reduce them further this year. Only a few months in, we have made meaningful progress in implementing Blueprint 2.0 with a heightened focus on innovation, data driven investment in key brands and disciplined cost management.”

Cocks continued, “For 2023, we have a focused plan to grow share in our key categories and further improve our margins. We are capitalizing on a fantastic entertainment slate, including Dungeons & Dragons: Honor Among Thieves in March and exciting new product launches, while facing a challenging consumer discretionary environment and approximately $300 million in revenue headwinds from exited licenses, brands and markets as well as foreign exchange. Our strategy is centered on what makes our brands great—play, supported by compelling storytelling and disciplined brand management.”

The results included significant impairment charges related to the company’s Blueprint 2.0 strategy focused on fewer, bigger brands; as well as severance charges, and a loss on the sale of a non-core business in the entertainment segment.

The entertainment segment delivered overall Q4 revenues of $334.8 million, a 12 percent decline in Q4. For the full year they fell 17 percent to $959.1 million. Film and TV revenue fell by 10 percent, reflecting lower film revenues with fewer new releases and the timing of deliveries. TV revenues increased. Family Brands revenue were down 40 percent, primarily due to the delivery of the My Little Pony: A New Generation film in the third quarter of 2021.