COVID-19 and the closures it’s caused (especially theater and retail shutdowns) continued to affect Hasbro in Q3 2020. The toymaker’s revenue for the quarter declined 4% to US$1.78 billion..
Hasbro did see significant growth in its e-commerce business, however, with revenue connected to online sales growing 50% in Q3. This contributed to a stronger overall performance than in the second quarter, when the toyco’s revenue dropped by 29% due to temporary store closures, lower retail inventory and product shortages.
Hasbro acquired Entertainment One in Q1 2020, and this financial report reflects results for the combined company. Because it did not exist in 2019, Hasbro used pro forma results (hypothetical results for how a combined Hasbro and eOne would have performed in the same quarter last year) to calculate changes in revenue. The company is reporting a pro forma Q3 2019 net revenue of US$1.86 billion, for example, while Hasbro alone generated net revenue of US$1.58 billion during that period.
Hasbro’s entertainment, licensing and digital segment reported US$89 million in revenue for the third quarter (down 23%). And the TV, film and entertainment category was down 28% in revenue to US$165.7 million.
Revenue for eOne fell 32% to US$193.5 million. Live-action production shutdowns related to the pandemic contributed to entertainment delivery delays, which caused the drop for eOne’s TV and film segment.
Looking forward, Hasbro CEO Brian Goldner said in a statement that production is resuming and the company expects to improve deliveries in Q4 2020 with some launches moving into 2021. eOne has been appointed as Hasbro’s global entertainment arm, with responsibility for content and distribution moving forward. Upcoming efforts include the new series My Little Pony: Pony Life, as well as new film and TV adaptations inspired by the Power Rangers IP.
Meanwhile, gaming proved to be a point of strength for the toymaker in Q3. Hasbro’s franchise brands segment grew 4% to US$807.6 million due to the solid performance of gaming brands and products related to Star Wars. Revenue for the category was reported at US$239.2 million (up 3%), and Hasbro’s total gaming category revenue increased 21% to US$543.1 million during the third quarter. (The total gaming segment takes into account all gaming revenue, including brands like Magic: The Gathering and Monopoly, which are part of Hasbro’s franchise brands segment.)
The toyco’s partner brands segment saw revenue decline 4% to US$409.2 million in Q3. And an 18% drop in the emerging brands segment resulted in revenue of US$155 million.
Revenue in the US and Canada increased by 9% to US$977.1 million, while international revenue fell 8% to US$517 million.