Hasbro has posted third-quarter earnings of $213 million, compared to the year-ago’s $264 million, and cited in its Q3 results an impact on domestic revenues from enacted and proposed tariffs on China-made toys.<\/p>\n
\u201cHasbro remains on track to deliver profitable revenue growth in 2019, behind innovation in gaming, toys and around Hasbro’s Brand Blueprint,” said Brian Goldner, Hasbro\u2019s chairman and chief executive officer. “However, as we’ve communicated, the threat and enactment of tariffs reduced revenues in the third quarter and increased expenses to deliver product to retail.”<\/p>\n
“The team drove continued growth in the Wizards of the Coast gaming brands, Magic: The Gathering and Dungeons & Dragons, and delivered significant new holiday initiatives,” he continued. “To start the fourth quarter, we are seeing a strong consumer response to the global launch of Hasbro’s line for Disney’s Frozen 2<\/em> and Star Wars: The Rise of Skywalker<\/em> as well as the U.S. launch of the new NERF Ultra.”<\/p>\n During the third quarter of 2019, Hasbro entered into a definitive agreement to acquire Entertainment One (eOne) in an all-cash transaction valued at approximately \u00a33.3 billion ($4.3 billion). As a result of hedging part of the british pound purchase price of eOne, Hasbro recognized an after-tax foreign exchange loss of $20.9 million after-tax charge. Including that, net earnings were $212.9 million; excluding the charge, adjusted net earnings were $233.8 million.<\/p>\n Q3 2019 revenues were $1.58 billion, compared to $1.57 billion a year ago. Absent a negative $20.5 million impact of foreign exchange, third-quarter revenues grew 2 percent.<\/p>\n “In addition, we are pleased with the progress toward completing our acquisition of eOne, including last week’s overwhelming approval by eOne shareholders. We expect to close the transaction during the fourth quarter,” continued Goldner. “The strategic opportunity to bring onboard the brands, capabilities and talent from eOne is compelling to our long-term prospects as a leading global play and entertainment company and we look forward to sharing more about our plans after the close.”<\/p>\n \u201cHasbro’s global teams are executing within a dynamic trade environment that is impacting the timing of revenues, driving incremental expenses and putting upward pressure on our underlying tax rate,\u201d said Deborah Thomas, Hasbro\u2019s chief financial officer. “In addition, third-quarter operating profit was negatively impacted versus last year from lower Entertainment, Licensing and Digital segment margins, a higher revenue mix of lower margin Partner Brands and incremental shipping and warehousing costs which partially offset our cost savings. We anticipate disruption throughout the remainder of 2019 as retailers work to manage costs and inventory and we are working to mitigate the impact on consumers this holiday season. Our teams are delivering an innovative slate across demographics and categories, including in digital gaming, that we are supporting with robust marketing programs and investment. Hasbro’s financial position is strong and we ended the quarter with $1.1 billion in cash on our balance sheet.”<\/p>\n Revenues were up 20 percent in the entertainment, licensing and digital segment; revenues decreased 2 percent in the U.S. and Canada segment; revenues were flat in the international segment but increased 4 percent absent a negative $19.9 million impact of foreign exchange.<\/p>\n Partner brands revenue increased 40 percent; franchise brands revenue decreased 8 percent; Hasbro gaming revenues decreased by 17 percent; and emerging brands revenue was flat.<\/p>\n","protected":false},"excerpt":{"rendered":" Hasbro has posted third-quarter earnings of $213 million, compared to the year-ago’s $264 million, and cited in its Q3 results an impact on domestic revenues from enacted and proposed tariffs on China-made toys.<\/p>\n","protected":false},"author":350,"featured_media":17506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":0,"footnotes":""},"categories":[21],"tags":[166],"class_list":["post-17505","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-top-stories","tag-hasbro","pmpro-has-access"],"yoast_head":"\n