While experiencing a first quarter loss of US$2.6 million in 2012, the world’s number-two toyco reported 4% and 2% revenue increases in the boys and preschool product categories, respectively, and international revenues grew by 14% to US$289.7 million.
Hasbro posted net earnings of US$5.1 million (excluding US$11.1 million in severance costs) versus US$17.2 million a year ago, with net revenues declining 3% to US$648.9 million compared to US$672.0 million in 2011.
President and CEO Brian Goldner stated that the results were consistent with the company’s business plan for 2012 and the company is expecting a boost in the latter half of the year, particularly from merch sales related to feature films The Avengers and The Amazing Spider-Man.
US and Canada segment net revenues came in at US$329 million, compared to US$391.2 million in 2011, reflecting growth in the preschool category, but they were offset by declines in other product categories.
Meanwhile, the increase in international segment net revenues (minus the negative US$8.2 million impact of foreign exchange), were marked by growth in the boys and games categories, offsetting flat revenues in the preschool category and a revenue drop in the girls category.
The boys product category revenue increase was driven by the Marvel and Star Wars brands while the preschool category was buoyed by Sesame Street, Playskool Rescue Heroes and Transformers Rescue Bots.
Net revenues for the toyco’s entertainment and licensing segment also increased 19% to US$29.3 million, versus $24.6 million a year ago, helped by US and international television programming sales and ongoing revenue associated with the hit Transformers IP.