Hasbro’s Q3 earnings beat expectations as families spend more on board games throughout pandemic

Stuck at home parents and a global demand for board games and home entertainment has helped Hasbro beat its Q3 analyst estimates as net earnings for the entertainment company reached $220.9 million versus pro forma net earnings of $216.5 million in 2019.

Net revenues for the global powerhouse did decline four per cent to $1.78 billion from $1.86 billion a year prior, but this itself was a rise on the $1.58 billion in its last quarter. Hasbro Gaming saw a three per cent increase to $239.2 million, while Franchise Brands rose four per cent to $807.6 million.

Hasbro’s total gaming category, including all gaming revenue, most notably Magic: The Gatherng and Monopoly totalled $543.1 million for the third quarter 2020, up 21 per cent from revenues of $449.4 million for the third quarter 2019.

“Hasbro’s third quarter performance was the result of great work from our global team and continued growing consumer demand for Hasbro brands in most markets,” said Brian Goldner, Hasbro’s chairman and chief executive officer.

“Our broad, innovative product line, including leadership in gaming, excellence in global ecomm and compelling marketing campaigns drove meaningfully better performance in the third quarter. Building off this quarter’s growth in toys, games and digital we are positioned to deliver a good holiday season.

“Live-action entertainment production is returning, and we are set to improve deliveries in the fourth quarter with some moving into 2021. While Covid-19 remains a factor in our global operations, consumers remain engaged in activities that create joy and personal connections and we are working purposefully to deliver them the world’s best play and entertainment experiences, while remaining focused on the safety and well-being of our global teams and communities.”

Deborah Thomas, Hasbro’s chief financial officer, added: “Our teams delivered a very good third quarter, showcasing the breadth of Hasbro’s portfolio, the benefits of our cost management efforts and the strength of our balance sheet.
“Hasbro’s partner factories and warehouses are open and operating and production is largely in line with demand. With a strong focus on cash collections, DSOs are down year-over-year and sequentially, and we ended the quarter with $1.13 billion in cash on the balance sheet. Importantly, as we look to the future, we remain focused on executing a good holiday, managing our expenses and investing to support our business plans for future years.”

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