The world’s second-largest toyco Hasbro’s Q3 numbers show net revenue growth of 5% to US$1.38 billion, compared to US$1.31 billion in the third quarter of 2010 and include a US$37.1 million boost from a positive foreign currency exchange.
Hasbro reported a 10% increase in net earnings for Q3 to US$171.0 million, compared to US$155.2 million in 2010.
The big winner in Q3 was Hasbro’s Entertainment and licensing business, which marked a sizeable 69% increase in net revenues to hit $46.3 million, compared to $27.5 million in 2010. The boost reflected growth in licensing revenue associated with the sale of television programming globally, movie and merchandise-related revenue from Transformers: Dark of the Moon, as well as a one-time payment from Universal Studios. The Entertainment and Licensing segment reported an operating profit of US$15.3 million compared to US$5.9 million in 2010.
Worldwide, revenues in the boys product category increased 15% to US$534.6 million, while the games and puzzles category dropped by 6% to US$364.7 million with sales in the girls category declining by 4% to US$259.1 million. Preschool sales, however, were up 12% to US$217.4 million.
US and Canadian segment net revenues declined 7% to US$764.6 million, compared to US$825.5 million in 2010. But products experienced an 8% increase year-over-year in point-of-sale at Hasbro’s top-four US accounts. The results reflect growth in the preschool category, which was offset by declines in the boys, girls and games and puzzles categories. The US and Canada segment reported an operating profit of US$128.8 million, compared to US$158.8 million in 2010.
International segment net revenues grew 23% to $563.3 million, an increase of $104.4 million compared to US$458.9 million in 2010. Net revenues in the international segment grew 15% absent the positive US$35.2 million impact of foreign exchange. Revenue in the international segment reflects growth in the boys category, which offset slight declines in the other product categories. The international segment reported a 42% increase in operating profit to US$100.7 million, compared to an operating profit of US$70.8 million in 2010.