PROVIDENCE – Hasbro Inc. posted a $32.9 million loss in the second quarter, or 25 cents per diluted share, the company reported Monday.
Company earnings totaled $13.4 million in the second quarter of 2019, or 11 cents per diluted share; however, proforma earnings that include the since-acquired Entertainment One Ltd. showed the combined company would have reported a $42.5 million loss, or 31 cents per diluted share in the second quarter of 2019.
Company revenue totaled $860.3 million, a 12.6% decline year over year. On a proforma-basis, revenue declined from $1.2 billion one year prior, a 29.2% decline.
Pawtucket-based Hasbro said that the second-quarter loss included $8.5 million after tax of acquisition-related expenses, $10.1 million after tax of severance charges associated with cost-savings initiatives within the company’s commercial and television and film businesses and $17.9 million after tax of purchased intangible amortization associated with the eOne acquisition.
Hasbro also cited COVID-19-related impacts to its business such as temporary store closures, lower retail inventories, product shortages, and the shutdown of live productions of TV and film productions, as part of its revenue and profit decline in the quarter.
“The global Hasbro team is executing our playbook amidst a dynamic and challenging environment. They are doing so with creativity and agility, identifying new and efficient ways to operate, capitalizing on our investments in creating a digital-first orientation while keeping our innovation engines moving and leveraging the expertise of a management team that has led through challenges in the past,” said Brian Goldner, Hasbro CEO and chairman.
The company noted that nearly 30% of global toy and game revenue was brought in via an e-commerce platform in the quarter. It also said that as stores reopened in the late second quarter, the company saw an increase in shipments and point of sale.
“The second quarter was much as we expected: strong point of sale for Hasbro brands countered by a very challenging revenue period due to global closures in our supply chain, across retailers as well as in entertainment production. We believe the outlook improves from here,” said Goldener.
Segment revenue for the second quarter (proforma):
- Franchise brands revenue declined 35% year over year to $376.8 million
- Partner brands revenue declined 35% year over year to $138.2 million
- Hasbro gaming revenue increased 11% year over year to $137 million
- Emerging brands revenue declined 29% year over year to $76 million
- TV/film/entertainment revenue declined 32% from the previous year to $132.2 million
