Hasbro Sees Q2 Profit Gain

Hasbro reported a second-quarter net profit of $142 million on revenues that were 1 percent higher at $1.34 billion.

The toy and play giant reported consumer-products revenues that were 7 percent higher at $734.2 million, but entertainment revenues were down 18 percent to $185.2 million. The Wizards of the Coast and digital gaming segment saw revenues rise 3 percent to $419.8 million.

The entertainment segment was down due to the sale of the music business, plus declines in film and TV and Family Brands revenues largely due to unfavorable foreign exchange rates and the timing of deliveries.

“The Hasbro team delivered strong second-quarter results, driving mid-single digit revenue growth absent foreign exchange and 200 basis points of adjusted operating margin expansion,” said Chris Cocks, Hasbro’s CEO. “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, multigenerational 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.”

Deborah Thomas, Hasbro’s CFO, added, “Foreign exchange is impacting our top line revenue growth, but our teams are executing well to meet demand and drive profit.”