Hasbro has seen its second quarter revenue increase nine per cent to $984.5 million in 2019, versus the $904.5 million is totalled for the same period in 2018.
The global toymaker has reported a strong Q2 in the US, where revenue grew 14 per cent, and in Canada where it increased by a substantial 28 per cent across entertainment, licensing and digital.
Franchise brands revenue increased 14 per cent, which included continued growth for its popular Magic: The Gathering franchise which saw growth across both tabletop and digital, which helped the entertainment, licensing and digital segment to its $96.5 million total, compared to its $75.5 million last year.
Partner brands also increased three per cent, while Hasbro Gaming decreased eight per cent.
“We delivered a high-quality second quarter, with positive consumer trends at retail and profitabl growth led by several geographies and brand categories,” said Brian Goldner, Hasbro’s chairman and chief executive officer.
“Our investments are differentiating Hasbro’s portfolio and delivering profitable revenue streams, including continued Magic: The Gathering revenue growth in tabletop and digital. We grew revenues in the US and Europe, and we believe we are well-positioned to deliver against our target of profitable growth for the full year 2019.”
Deborah Thomas, Hasbro’s chief financial officer, added: “The global Hasbro team executed a strong quarter with revenue and profit gains while managing a dynamic trade and inventory environment.
“As part of this process, we incurred some additional costs and took more inventory into the U.S. than typical. Despite these steps, margins improved, Hasbro’s overall inventory position declined, and we generated healthy operating cash flow.
“We are generating cost savings from our plan and are on track to deliver approximately $50 million in net savings this year. Importantly, we are well positioned for the holiday season with major brand initiatives across categories, including The Walt Disney Animation Studios’ Frozen 2 and Lucas Films’ Star Wars: The Rise of Skywalker which do not launch until the fourth quarter.”