Hasbro’s gaming business and growth in the LatAm region drove its net revenue up by 1% in Q2 2022 over the same period last year, according to its latest financial report.
The toyco’s Wizards of the Coast division (which owns the Dungeons & Dragons game, pictured) had its most successful quarter ever, driven by a 15% revenue increase in its tabletop gaming segment to US$361.8 million, said Hasbro CEO Chris Cocks said in the company’s financial report. He added that growth is expected to continue for the gaming business following the May acquisition of D&D Beyond, a Dungeons & Dragons companion website.
The company’s top-performing brands for the quarter were Magic: The Gathering, Peppa Pig, Play-Doh, My Little Pony and the Marvel suite.
Hasbro’s consumer products revenue was up 7% to US$734.2 million, partially offset by higher product and freight costs in Q2 (even after purchasing inventory earlier than usual to ensure strong supply in 2022). Its most dramatic consumer products growth was in LatAm, where net revenue climbed by 36% to US$72.2 million. North American net revenue increased 11% to US$433.3 million, but it dropped 8% in Europe to US$162.1 million. And APAC saw a 3% decline to US$66.6 million.
The toyco’s franchise brands business, which includes Peppa Pig, jumped 10% to US$743.9 million. But the TV/film/entertainment segment (which includes the music division that Hasbro sold off in Q3 2021) dropped 19% to US$158.1 million.
The family brands entertainment segment that Peppa Pig and PJ Masks belong to dropped to US$22.8 million, down 13% from the same quarter last year. The company attributes this to the timing of deliveries and lower YouTube revenues.
Going forward, Hasbro plans to achieve low single-digit growth for 2022 by focusing on its most popular brands and investing in new ways to expand its properties. Recent efforts along these lines have seen the company move into My Little Pony NFTs with Funko and team up with the NBA to relaunch its sports figure brand Starting Lineup.