Hasbro earns $117.5M profit in Q1

HASBRO INC. reported a $117.5 million profit in the first quarter of 2021. / COURTESY R.I. DEPARTMENT OF HEALTH

PAWTUCKET – Hasbro Inc. on Tuesday reported a profit of $117.5 million in the first quarter of 2021, or 84 cents per diluted share, a turnaround from a $67.9 million loss one year prior, or 51 cents per diluted share.

The company’s loss one year prior was attributable both to the impact of the COVID-19 pandemic and the company’s acquisition of Entertainment One Ltd.

Company revenue totaled $1.1 billion, a rise of 0.8% year over year:

  • The company’s franchise brands portfolio, including Magic the Gathering, Play-Doh and Nerf, logged revenue of $491.5 million in the quarter, a rise of 24% year over year. The company noted that revenue increased for Wizards of the Coast’s Magic the Gathering and Dungeons and Dragons, including a rise in digital gaming revenue for both properties.
  • Partner brands portfolio revenue, including products for Star Wars, Marvel’s Spider Man and Marvel Studios content, totaled $188 million, a rise of 3% year over year.
  • Hasbro gaming revenue totaled $136.3 million, a decline of 3% year over year due to strong growth performance one year prior, the company said.
  • TV/film/entertainment revenue totaled $194.3 million, a decline of 34% year over year, primarily due to the impact of COVID-related theater shutdowns.

“The global Hasbro team executed a very good quarter, driving strong sell in and demand in the consumer products segment; growing both analog and digital revenue in Wizards [of the Coast] and our licensed digital gaming business; and positioning us to deliver growth for the full year in the entertainment segment,” said Brian Goldner, Hasbro’s chairman and CEO. “We continue to target full-year, double-digit revenue growth for Hasbro supported by innovation and quality execution throughout the business. Across Hasbro we are focused on unlocking the full potential value of our brands and capabilities as a play and entertainment leader.”

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The company also said that it had realized a gain of $25.6 million, or 19 cents per diluted share, from a legal settlement in the first quarter, but did not specify the nature of the litigation.

The company separately announced Tuesday that it had entered into a definitive agreement to sell Entertainment One Music for $385 million in cash to entities controlled by Blackstone, which also owns the music-rights organization SESAC Holdings.

Hasbro acquired Entertainment One Music as part of its massive acquisition of Entertainment One Ltd. in 2019.

Proceeds from the sale will be used to accelerate deleveraging and other general corporate purposes, the company said. The transaction is expected to close in the second or third quarter of 2021.

Following the closing of the transaction, which is subject to regulatory approvals, eOne Music will operate as a separate business headed by current global President Chris Taylor.

“This transaction will ensure that eOne Music is well-positioned to unlock great opportunities for its many talented artists and partners, as Hasbro continues to focus on the core strategic elements of our brand blueprint to further strengthen our position as a purpose‐led play and entertainment company. On behalf of the board and Hasbro management, I want to recognize the strong leadership of Chris Taylor and the entire eOne Music organization,” said Goldner.

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