Hasbro has seen its first quarter 2021 revenues increase by one per cent year on year to $1.11 billion, citing revenue growth across its consumer products as well as its Wizards of the Coast and Digital Gaming arms.
Chairman and CEO, Brian Goldner has declared it “a very good quarter” for Hasbro that saw its consumer products segment revenue increase 14 per cent, while revenue across its Wizards of the Coast and Digital Gaming segment – spanning both analogue and digital gaming – grew 15 per cent.
“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 revenues in Wizards and our licensed digital gaming business; and positioning us to deliver growth for the full year in the Entertainment segment,” he said.
“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.”
Deborah Thomas, Hasbro’s chief financial officer, added: “Our first quarter started the year well. The team delivered revenue and profit gains, as well as strong cash generation, ending the quarter with $1.43 billion in cash, after retiring $300 million in debt and paying our quarterly dividend.”
Entertainment ended Q1 2021 down 32 per cent on the year prior, hitting £218.7 million compared to the $322.5 million in Q1 2020.
Hasbro’s franchise brands, including Magic: The Gathering, Play-Doh, NERF, and Transformers saw a 24 per cent increase to hit $491.5 million, compared to the $396.5 million the year prior, while partner brands – which includes Star Wars and The Mandalorian, Marvel’s Spider-Man, and Marvel Studios content saw a decline of three per cent to $188 million for Q1 2021.
Emerging Brands revenue increased with several properties contributing and Hasbro Gaming declined slightly versus the strong growth reported in the first quarter of last year.
Hasbro’s total gaming category, including all gaming revenue, most notably Magic: The Gathering and Monopoly, which are reported in the Franchise Brands portfolio, totaled $365.3 million for the first quarter 2021, up seven per cent compared to the respective period in 2020.
In the Consumer Products segment, revenue and operating profit grew, driven by gains in Hasbro brands like PLay-Doh, NERF, Transformers, Star Wars, and Disney Princess. Revenue grew in all geographic regions, led by the US and Europe.
Meanwhile, revenue growth for Magic: The Gathering and Dungeons & Dragons, saw operating profit and net revenue increase across Hasbro’s Wizards of the Coast and Digital Gaming segment. It was partially off-set by increased product development as well as higher advertising to support the mobile launch of Magic Arena and the upcoming launch of Dark Alliance.
Entertainment segment revenue declined due to expected difficult comparisons in the TV and Film business. The theatrical business continues to be impacted by COVID-related theater shutdowns, whereas last year theaters were open for most of the quarter.
Scripted TV deliveries are slated to increase later in the current year and we are targeting returning to 2019 levels of revenue for the full-year 2021 in the TV and Film business.
Adjusted operating profit declined on the lower revenue, partially offset by reduced advertising and promotional spend due to the lack of theatrical activity this year versus last.