Hasbro has seen its second quarter sales surge 54 per cent to $1.32 billion over what has been billed as ‘an excellent quarter’ with increases across its consumer products division and Wizards of the Coast and Digital Gaming segments.
Revenues increased 54 per cent versus the second quarter of last year, and nine per cent versus pro forma second quarter of 2019, before the pandemic. The global toymaker saw its consumer products segment increase revenues of 33 per cent, while its Wizards of the Coast and Digital Gaming segment more than doubled.
Brian Goldner, Hasbro’s chairman and chief executive officer, said: “Hasbro delivered an excellent second quarter, with revenues up 54 per cent versus the second quarter of last year, and nine per cent versus pro forma second quarter 2019.
“Wizards continued to generate outstanding results behind a compelling analog and digital release schedule for Magic: The Gathering. Consumer products revenue increased as demand remains robust for Hasbro toys and games and entertainment revenue grew as we are producing entertainment with strong deliveries.”
The toymaker’s CEO praised the Hasbro team and its high level of performance as it ‘tracks to its target of double-digit revenue growth for the full year.’
The quarter’s strong results have been reflected in each Brand Portfolio category under the Hasbro business, with gains witnessed across Magic: The Gathering, NERF, Transformers, Play-Doh, Baby Alive, and My Little Pony. Partner brands revenue increased behind growth in Hasbro products for the Marvel portfolio, Lucasfilm’s Star Wars and The Mandalorian, Disney Princess and Beyblade.
Meanwhile, Hasbro Gaming saw revenue increase on 2020 and 2019, led by Dungeons & Dragons and Duel Masters, as well as a the launch of Foosketball.
In the consumer products segment, revenue and operating profit grew in Hasbro Franchise Brands NERF, Transformers, and Play-Doh, as well as products for Marvel and Star Wars. Point of sale for toys increased, but was off-set by a decline in games point of sale compared to the sector’s strong performance on Q2 2020.
Elsewhere, and it was in the Wizards of the Coast and Digital Gaming segment in which records were set. Wizards had two record releases in Q2 in Magic: The Gathering Strixhaven and Modern Horizons 2.
Deborah Thomas, Hasbro’s chief financial officer, said: “Strength across Hasbro’s brands and business backed by strong execution from the entire team drove superb results for our second quarter.
“As we invest to unlock value from our brands across the blueprint, we are on track to reach our objectives for the year while expanding the reach of our business, reducing debt, and paying our dividend. The discipline in our business is evident from the $1.2 billion in cash we had on hand at quarter end, reporting the lowest days sales outstanding in our recent history, and repaying $250 million in debt.”