PAWTUCKET – Hasbro Inc. posted a third-quarter profit of $223.2 million on Thursday, up from a $171 million loss in the same period a year ago, in the wake of the sale of its Entertainment One film and TV business in December.
Hasbro Inc. on Thursday also confirmed that it plans to cut fewer than 100 jobs, with roughly half based in Rhode Island, as part of its ongoing restructuring effort, according to Hasbro spokesperson Andrea Snyder.
Hasbro has decreased its Rhode Island-based workforce in recent years and now has about 1,000. It remains unclear when the new round of layoffs will go into effect. The earnings report and jobs reduction come as the toymaker is considering moving its headquarters to Massachusetts.
In an Oct. 23 memo to staff, Hasbro CEO Chris Cocks said employees should expect another update on the "location strategy" sometime in the first quarter of 2025.
"We will also be making investments in our team, most notably exploring a new HQ with a collaborative, modern environment that is reflective of our brands and fosters innovation," he said.
"We wouldn’t be moving until mid-2026 at the earliest, prioritizing convenience to public transit, and working closely with teams to make sure we’re building a space that works for our unique needs."
On Thursday, the toy company reported earnings of $1.59 per diluted share, compared with a loss of $1.23 loss per diluted share a year ago. The improved bottom line follows the sale of the eOne business to Lionsgate for $375 million in December.
In part because of the loss of revenue from eOne, Hasbro's total revenue sank from $1.5 billion in the third quarter of 2023 to $1.28 billion in the quarter just completed. But that loss of revenue was offset because the company is no longer booking losses related to the sale of eOne. In the third quarter of 2023, that "loss on disposal of business" totaled $473 million.
Still, Hasbro's revenue performance missed
Wall Street’s expectations. Six analysts polled by Zacks Investment Research were forecasting revenue of $1.3 billion.
“Outperformance within our gaming and licensing businesses in the third-quarter highlights the strength in two of our highest profit areas,” Hasbro CEO Chris Cocks said. “Our key initiatives around digital, licensing and reinvigorating our product innovation are bearing fruit.”
- The company’s franchise brands portfolio, including Magic the Gathering, Play-Doh and Nerf, logged revenue of $941 million in the third quarter, a decrease of 7% year over year. The company noted top brand performances included Dungeons & Dragos, Magic: The Gathering, Hasbro gaming and Transformer products.
- Partner brands portfolio revenue, including products for Star Wars, Marvel’s Spider-Man and Marvel Studios content, totaled $190 million in the third quarter, a decline of 17% year over year.
- Wizards of the Coast and digital gaming revenue decreased 19% year over year in the third quarter to $107.2 million.
“We continue to execute our turnaround efforts and are poised to finish the year with improved profitability, cash flow and operational rigor,” said Gina Goetter, Hasbro’s chief financial officer.
(UPDATE: Corrects number of layoffs to fewer than 100)
With reports from PBN staff writer Christopher Allen.
