Hasbro Reports Q2 Revenue Gain


Hasbro’s second-quarter revenues increased 9 percent to $984.5 million.

“We delivered a high-quality second quarter, with positive consumer trends at retail and profitable growth led by several geographies and brand categories,” said Brian Goldner, Hasbro’s chairman and CEO. “Our investments are differentiating Hasbro’s portfolio and delivering profitable revenue streams, including continued Magic: The Gathering revenue growth in tabletop and digital. We grew revenues in the U.S. and Europe, and we believe we are well-positioned to deliver against our target of profitable growth for the full-year 2019.”

Q2 U.S. and Canada segment net revenues increased 14 percent to $510.5 million, as revenue growth in franchise brands, partner brands and emerging brands was partially offset by a decline in Hasbro gaming. International segment net revenues for the second quarter decreased 1 percent to $377.4 million. Within the international segment, franchise and emerging brand categories saw revenue gains, partner brands revenue was flat, and Hasbro gaming revenue declined.

Net revenues for the entertainment, licensing and digital segment increased 28 percent to $96.5 million. This growth was driven by digital gaming, primarily Magic: The Gathering Arena. Operating profit decreased to $7.9 million, or 8.2 percent of net revenues, versus $21.8 million, or 28.8 percent of net revenues in 2018. The decline in operating profit was due to higher program production expense, as well as continued investments in digital gaming initiatives.

“The global Hasbro team executed a strong quarter with revenue and profit gains while managing a dynamic trade and inventory environment,” said Deborah Thomas, Hasbro’s chief financial officer. “As part of this process, we incurred some additional costs and took more inventory into the U.S. than typical. Despite these steps, margins improved, Hasbro’s overall inventory position declined, and we generated healthy operating cash flow. We are generating cost savings from our plan and are on track to deliver approximately $50 million in net savings this year. Importantly, we are well positioned for the holiday season with major brand initiatives across categories, including The Walt Disney Animation Studios’ Frozen 2 and Lucas Films’ Star Wars: The Rise of Skywalker, which do not launch until the fourth quarter.”