Q3 2016 goes down as Hasbro's greatest ever revenue and earnings quarter

Billy Langsworthy

By Billy Langsworthy

October 17th 2016 at 3:26PM
UPDATED October 18th 2016 at 12:00PM
Q3 2016 goes down as Hasbro's greatest ever revenue and earnings quarter

"Innovative play experiences, engaging storytelling and global execution of Hasbro's brand blueprint continues to drive consumer and retailer demand for our brand portfolio," said Brian Goldner, Hasbro's chairman, president and chief executive officer.

Q3 2016 saw Hasbro's net revenues increase 14 per cent to $1.68 billion, the greatest revenue quarter in the firm's history.

Elsewhere, net earnings for Q3 2016 increased 24 per cent to $257.8 million, the greatest earnings quarter in Hasbro's history.

"Innovative play experiences, engaging storytelling and global execution of Hasbro's brand blueprint continues to drive consumer and retailer demand for our brand portfolio," said Brian Goldner, Hasbro's chairman, president and chief executive officer.

"2016 has been a strong year, including our third quarter - which marked the greatest revenue and earnings quarter in Hasbro's history. We are well positioned for what we believe will be a good holiday season."

Third quarter 2016 US and Canada segment net revenues increased 16 per cent to $932.8 million compared to $803.8 million in 2015. International segment net revenues increased 13 per cent to $690.7 million compared to $612.6 million in 2015. On a regional basis, Europe grew 16 per cent, Latin America increased nine per cent, and Asia Pacific was up one per cent.

Entertainment and Licensing segment net revenues increased eight per cent to $56.1 million compared to $52.1 million in 2015, driven by growth in consumer products and digital gaming.

"Throughout 2016 the Hasbro team has delivered strong financial performance, in terms of revenues and earnings growth, supported by a solid balance sheet enabling our business growth," added Deborah Thomas, Hasbro's chief financial officer.

"The strength of our business enabled us to continue investing in growing Hasbro for the long term, while returning $112 million to shareholders in the quarter."

Boys category revenues for the third quarter increased  per cent to $605.5 million, with revenue growth driven by gains in Nerf and Transformers, as well as shipments of Yo-Kai Watch.

Games category revenues for the third quarter increased 13 per cent to $409.5 million. Magic: The Gathering revenues increased in Q3 2016, while Pie Face and Duel Masters also enjoyed growth,

In the girls category, Q3 revenue increased 57 per cent to $462 million thanks to Frozen and Disney Princess, while in pre-school, revenues declined eight per cent to $202.8 million.