It’s unsurprising that the coronavirus would have an effect on the profitability of companies across the planet, and Hasbro reveal their second quarter figures, which have taken an understandable drop.
Net revenues for the second quarter 2020 were $860.3m versus $1.2b pro forma revenues in 2019, a decline of 29%. Hasbro says foreign exchange had a $15.8m negative impact on Q2 revenues, and that net loss for the second quarter 2020 was $33.9m versus pro forma net loss of $42.6m in 2019.
Games saw strong growth throughout the period, with gaming revenues up +11% despite temporary store closures and disruption to stock levels. The growth was led by classic family titles such as Jenga, Connect 4, Battleship, Twister and Mousetrap. Magic:The Gathering, one of Hasbro’s standout gaming titles, experienced an expected decline in Q2, as 2019 had benefited from a major new release.
A major shift to e-commerce as a result of the pandemic was reflected in online sales data for the period, with nearly 30% of global toy and game revenues being transacted online in the second quarter. Point of sale also performed well in Q2, increasing by high single-digits, including double-digit gains in the US, UK, France, Italy and Australia. Point of sale remained strong for Disney’s Frozen II and Lucasfilm’s Star Wars products, as well as Play-Doh and Nerf.
The halting of live-action film and TV production impacted the business; eOne pro forma revenues declined in the quarter. Shutdowns delayed the completion and delivery of productions and timing of revenues to both later in 2020 and into 2021, though animation production for Peppa Pig, PJ Masks and the My Little Pony feature film, slated for release next year, continued.
Ongoing closures and disruption in some regions continue to impact sales, though Hasbro says it is ‘managing the business to navigate through this difficult environment and remain nimble as the impacts of the pandemic remain’.