Hasbro have enjoyed a great third quarter boost as revenues increased by 11% to hit $1.97bn, boosted by stellar results from their entertainment segment which was up an incredible 76%. The gaming segment saw revenue increase by 32% while operating profit rose by 9% to 367.9m.
Consumer Products segment revenue and operating profit declined slightly, despite the team executing major new launches for My Little Pony, Peppa Pig and PJ Masks. Meanwhile, Hasbro Gaming and Emerging Brands revenue increased and revenue also grew in Licensing and Latin America.
Global consumer point of sale declined mid-single digits, due to stock levels falling below targets. Hasbro stated that the team worked tirelessly to ship product to meet a higher level of demand, delivering most of the orders. However, supply chain disruption, including limited capacity and port congestion, resulted in approximately $100m of orders not being fulfilled in the quarter, although the majority of that was subsequently shipped early in Q4.
Wizards of the Coast & Digital Gaming segment revenue grew, led by tabletop and digital gaming revenues for Magic: The Gathering, Dungeons & Dragons and licensed digital gaming. Successful Magic: The Gathering releases of Adventures in the Forgotten Realms and Innistrad: Midnight Hunt have continued to drive strong demand.
Showcasing the power and potential of the Brand Blueprint, Hasbro’s My Little Pony came to life on film in My Little Pony: A New Generation, which premiered on Netflix in September. The film debuted at number one for kids viewership over its launch weekend in over 80 markets. As one of the top revenue drivers in the quarter, Hasbro stated that My Little Pony’s relaunch is “well underway with innovative toy, game and licensing merchandise, in addition to the animated film and robust content road map to follow.”
Revenues also grew in the Franchise Brands, Hasbro Gaming, Emerging Brands and TV/Film/Entertainment categories, while it declined in Partner Brands. Franchise Brand revenues increased with gains in Magic: The Gathering, My Little Pony and Transformers. Partner Brands revenue declined despite growth in products for the Marvel portfolio, including the Spider-Man franchise, and Ghostbusters, which was offset by declines in other properties. Hasbro Gaming revenue increased, led by Dungeons & Dragons as well as many classic games such as The Game of Life, Connect 4 and Guess Who. Emerging Brands revenue growth reflected the launch of Hasbro products for Peppa Pig and PJ Masks at retail, as well as continued fan engagement for GI Joe product.
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