Hasbro Revenues & Net Earnings Up in Q1

Hasbro’s first-quarter revenues rose 2 percent to $849.7 million as compared to $831.2 million in 2016, while net earnings increased 41 percent to $68.6 million versus $48.8 million the year before.

Revenue was up 2 percent in the U.S. and Canada to $451.6 million, with the segment reporting operating profit of $64.8 million. The entertainment and licensing category rose 24 percent to $52.7 million, and its operating profit increased 108 percent to $11.3 million.

Hasbro Gaming grew 43 percent to $142.9 million. The increase was driven by a number of new games, including Speak Out, Toilet Trouble and Fantastic Gymnastics; digital gaming; and several other gaming brands, such as Dungeons & Dragons, Bop-It and Pie-Face. The company’s total gaming category grew 10 percent to $253.3 million.

International segment revenues were essentially flat at $345.3 million. Revenue growth in franchise brands, gaming and emerging brands offset the anticipated drop in partner brands. Regionally, European revenues declined 4 percent, Latin America increased 16 percent and Asia Pacific was down by 1 percent. Emerging markets revenues were up 20 percent in Q1. International segment operating profit was $0.5 million, compared to $2.9 million in 2016.

“Our first-quarter results are in line with our previously communicated expectations and we are well-positioned to execute against 2017’s rich content slate and diverse new initiatives,” said Brian Goldner, Hasbro’s chairman and CEO. “Revenue grew in the quarter and we drove strong consumer takeaway at retail, both compared to a robust first quarter last year and with a shift of Easter into this year’s second quarter. Over the coming quarters we are supporting significant new initiatives, including major theatrical films for both franchise and partner brands.”

“Hasbro remains in a strong financial position, with positive trends to start the year and a healthy balance sheet,” noted Deborah Thomas, Hasbro’s chief financial officer. “As anticipated, operating profit in the quarter was negatively impacted by an extra week of expenses without the comparable revenue increase. This decline was more than offset by a favorable foreign exchange impact in non-operating income and the tax benefit from the new accounting standard. Based on our first quarter’s performance, our full-year expectations remain in line with our previously stated objectives.”