Hasbro revenue rises 11% in Q2

Growth in the company's Gaming and Franchise Brands categories contributed to the sales uptick, offsetting declines experienced by Emerging Brands properties like Playskool, Super Soaker and Easy-Bake Oven.
July 24, 2017

Rhode Island-based toymaker Hasbro reported net earnings of US$67.7 million in Q2 2017, marking an increase of 30% over the same period last year. Net revenue for the second quarter rose 11% to US$972.5 million, up from US$878.9 million in 2016.

Hasbro’s Emerging Brands category, however, saw its revenue decline by 14% in Q2 to US$62.9 million. The drop was driven primarily by declines in Playskool, Super Soaker and Easy-Bake Oven products. Revenue for Baby Alive goods also saw slight dips.

The Entertainment and Licensing category also saw revenue fall 1% to US$51.5 million in Q2. Declines in entertainment revenues were offset by growth in digital gaming, led by Backflip Studios.

The company’s Gaming division experienced growth in Q1 2017, with revenue increasing 43% to the tune of US$142.9 million. The momentum continued in the second quarter,  as revenue increased 6% to US$133.9 million. The positive results were largely attributed to properties like Operation as well as Dungeons & Dragons. (To capitalize on this growth, the company launched Gaming Crate in June, its first-ever subscription service.)

Hasbro’s total Gaming category—including Magic: The Gathering and Monopoly, which are included in Franchise Brands revenue—totaled US$273.3 million in Q2, a growth of 20% over the same period last year.  Second quarter revenue for Franchise Brands grew 21% to US$545.7 million, driven by growth from properties like Transformers (pictured), Magic: The Gathering, Nerf and Monopoly.

Partner Brands, meanwhile, saw sales rise by a slight 1% to US$230 million. Brands like Beyblade, DreamWorks’ Trolls, Marvel (specifically Guardians of the Galaxy and Spider-Man) and Disney Princess contributed to the revenue uptick. Hasbro expects the Star Wars brand and upcoming film Star Wars: The Last Jedi to fuel results in the second half of the year.

In the US and Canada, specifically, net revenue increased 16% to US$494.4 million, while international net revenue grew by 6% to US$426.6 million. On a regional basis, revenue grew 4% in Europe (to US$237.6 million), rose 3% in Latin America (to US$99.9 million) and was up 18% in Asia Pacific (to US$89.1 million), while Emerging Markets revenue increased 7% in Q2 2017.


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