Hasbro have seen a decline in profits for the third quarter, but they are optimistic things are about to turn for the better. While third quarter revenue declined by 10%, there was significant growth in Wizards of the Coast and Digital Gaming segment which were up +40%, but that was outweighed by drops in Consumer Products, down -18% and Entertainment, down a hefty -42%.
“Our third quarter results highlight the strength of Hasbro’s diversified toy and game portfolio and the progress we have made on our transformation,” said Chris Cocks, Hasbro chief executive officer. “Wizards of the Coast and Digital Gaming delivered a standout performance across strength in Magic: The Gathering and Dungeons & Dragons, particularly the blockbuster August release of Baldur’s Gate III. We are taking action to address the tougher macro environment across Toys and Entertainment and positioning the company to return to profitable growth.”
He added: “Building on the strategy we outlined a year ago, we’re growing share behind our franchise brands in core categories, driving savings and investment capacity through operational excellence and building new growth across games, direct to consumer and licensing. With the upcoming sale of the eOne Film and TV business, we are refocusing our company on what has traditionally made us great, the business of play. We believe in the long-term growth potential of toys and are leaning in.”
The company said its plan for Q4 is to drive share over the holiday and exit the year with clean inventory, a much-improved corporate overhead and a clear runway for introducing new product innovation and go-to market support in the quarters ahead.
CP revenue decline was the result of exited licences and softer category trends, although share increased across four of the five focus categories.
Hasbro said it is on track to deliver approximately $200m of gross cost savings in 2023 as part of Operational Excellence initiative, and added that the sale of its eOne Film and TV business is on track to close by year end.
- Hardcover Book
- Wallace, Daniel (Author)
- English (Publication Language)
- 156 Pages - 11/12/2024 (Publication Date) - Insight Editions (Publisher)
