Mixed bag for Hasbro in Q2 - ToyNews

Mixed bag for Hasbro in Q2

Games, Girls and Preschool up whilst Boys is down
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Hasbro has announced its financial results for Q2 2013 and it’s a mixed bag for the firm.

Net revenues for the quarter were $766.3 million, a 6 per cent decline compared to $811.5 million in 2012.

As adjusted, net earnings for the second quarter 2013 were $38.3 million, or $0.29 per diluted share, compared to $43.4 million, or $0.33 per diluted share in 2012.

Net revenues for the Boys category decreased 35 per cent in the quarter, down to $253.7 million. In the category, Nerf was up whilst brands like Marvel and Beyblade faced ‘difficult comparisons’ with the second quarter 2012.

But elsewhere, there was growth for the firm in other categories.

The Games category increased revenues 19 per cent year-on-year and Magic: The Gathering and Monopoly were up in the quarter.

The Girls category posted its fourth straight quarter of growth, increasing 43 per cent in the quarter with Furby and My Little Pony the prime causes.

The Preschool category also grew in the second quarter, increasing 4 per cent to $107.8 million.

"Through our global brand building efforts, we are taking steps to drive long-term profitable growth across our brand portfolio," said Brian Goldner, Hasbro's President and CEO.

"In the second quarter, this resulted in growth in our Girls, Games, and Preschool categories. This growth, however, did not offset the decline in our Boys revenues, which faced difficult comparisons due to major motion pictures in 2012.

“As we enter the second half of the year, we have innovative brand initiatives across categories and geographies, including Nerf Rebelle, Furby Boom, My Little Pony Equestria Girls, Telepods for Angry Birds Star Wars II and Transformers Construct-Bots.

"Across our business, we are increasing our focus on our most important initiatives while right sizing our cost base. We have expanded our digital gaming capabilities with the acquisition of 70% of Backflip Studios, a profitable mobile game studio.

“Importantly, we are developing comprehensive and innovative lines for both film and television entertainment in the coming years, including Transformers 4 in 2014 as well as Marvel and Star Wars entertainment from Disney in 2014, 2015 and beyond."

When analysing regional performance, the U.S. and Canada segment net revenues were $389.2 million compared to $406.6 million in 2012 whilst international segment net revenues were $340.2 million compared to $360.5 million in 2012.

Entertainment and Licensing segment net revenues were $35.3 million compared to $43.2 million in 2012. Second quarter 2012 revenues reflected a higher mix of revenues from television programming sales for digital distribution. The Entertainment and Licensing segment reported an operating profit of $3.7 million compared to $8.2 million in 2012.

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