To blatantly steal a klingon proverb, today is a good day to buy, if you’re Hasbro that is as they see their third quarter profits rise via their online channels by 50%, while the States and Europe also grew.
Hasbro’s third quarter revenue grew 9% in the USA and Canada and 7% in Europe, although overall international revenue fell by 8% during the quarter, primarily driven by declines in Latin America. Globally, Hasbro’s business in online channels grew by 50%. Overall, net revenues for the third quarter were $1.78b, down 4%, while the company posted a healthy operating profit of $336.6m.
Speaking about the results, Brian Goldner, Hasbro’s chairman and chief executive officer, commented: “Hasbro’s third quarter performance was the result of great work from our global team and continued growing consumer demand for Hasbro brands in most markets. Our broad, innovative product line, including leadership in gaming, excellence in global ecommerce and compelling marketing campaigns drove meaningfully better performance in the third quarter. Building off this quarter’s growth in toys, games and digital, we are positioned to deliver a good holiday season. Live-action entertainment production is returning, and we are set to improve deliveries in the fourth quarter with some moving into 2021. While Covid-19 remains a factor in our global operations, consumers remain engaged in activities that create joy and personal connections and we are working purposefully to deliver them the world’s best play and entertainment experiences, while remaining focused on the safety and well-being of our global teams and communities.”
Deborah Thomas, Hasbro’s chief financial officer, added: “Hasbro’s partner factories and warehouses are open and operating and production is largely in line with demand. With a strong focus on cash collections, DSOs are down year-over-year and sequentially, and we ended the quarter with $1.13 billion in cash on the balance sheet. Importantly, as we look to the future, we remain focused on executing a good holiday, managing our expenses and investing to support our business plans for future years.”
Revenue grew in the Franchise Brand segment, led by Magic: The Gathering and Hasbro Gaming, which saw growth across numerous games properties. Hasbro products for Lucasfilm’s Star Wars and The Mandalorian also delivered strong revenue growth in the quarter.