Hasbro revenue falls 7% in second quarter

Despite continued growth in its Entertainment and Licensing segment, the toymaker saw its net revenue fall 7% to US$904.5 million in Q2 2018.
July 23, 2018

Hasbro has reported a 7% decline in its Q2 2018 net revenue to the tune of US$904.5 million, which the Rhode Island-based toymaker attributes in part to the liquidation of Toys “R” Us in the US and multiple global markets. Hasbro put its double-digit Q1 decrease in net revenue (down 16% to US$716.3 million) down to the TRU closures as well.

Net earnings for Q2 2018 were US$60.3 million, down from US$67.7 million in the same period last year.

Hasbro’s Entertainment and Licensing segment saw net revenues increase 26% to US$64.7 million for the quarter, with operating profit for the segment growing 64% to US$18.6 million.

Net revenue for Hasbro’s Franchise Brands segment declined 8% to US$506.5 million compared to Q2 2017. The segment’s growth in Magic: The Gathering, Monopoly and Baby Alive was offset by declines in Transformers. The toyco’s Partner Brands segment, meanwhile, declined 10% to US$208 million, with growth in Beyblade and Marvel offset by declines in other brands.

The company’s Emerging Brands segment saw net revenue fall 1% to US$55.6 million, although growth came from several new initiatives—including recent collectibles ranges Lost Kitties and Lock Stars.

Hasbro Gaming remained steady at US$134.3 million for Q2 2018. The company’s Total Gaming segment, including all gaming revenue, saw net revenue for the quarter rise 14% to US$312.8 million. Revenue for the Total Gaming segment includes Magic: The Gathering and Monopoly, which are featured in the Franchise Brands segment.

Declines in the second quarter followed a strong fiscal 2017 for the toymaker; Hasbro saw its net revenue increase by 4% to US$5.21 billion for the year, thanks in large part to growth in its Gaming and Franchise Brands segments.

In a statement, Hasbro said it will invest in entertainment and innovation in an effort to drive growth in 2019. The toyco strengthened its brand portfolio earlier this year with the acquisition of a number of Saban’s entertainment brands, including Power Rangers, My Pet Monster, Popples and Luna Petunia. The agreement—which included all related intellectual property, category rights and content libraries—came in the wake of Saban Brands tapping Hasbro as global master toy licensee for the Power Rangers brand, effective April 1, 2019.

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