Hasbro’s restructuring seems to be working. The toyco reported that its Q2 net revenue was only down 6% after excluding the sale of its eOne business to Lionsgate last year.
CEO Chris Cocks highlighted that the toyco beat expectations this quarter, generating US$995 million in global revenue and delivering US$40 million in operational cost savings as part of its efforts to reorganize the business.
Digital gaming—and especially its Wizards of the Coast vertical—continues to be Hasbro’s champion segment during this transformation, achieving 20% growth over last year’s Q2 results to hit US$452 million in worldwide revenue. The toyco attributes this bump to the launch of Magic: The Gathering‘s Modern Horizons 3 booster set (pictured) and strong sales for mobile game Monopoly Go!.
Unfortunately, Hasbro’s core consumer products business experienced a 20% revenue decrease that counteracted its digital gaming success. This is down to the company exiting unprofitable licenses and adjusting to its new entertainment slate. Despite the decline, Hasbro notes that Furby and G.I. Joe emerged as strong performers in Q2.
Entertainment took the largest hit this quarter, posting a 30% revenue decline to US$19 million (excluding the impact of eOne’s sale). Hasbro will look to turn this around in the remaining two quarters of 2024, earmarking its CG-animated feature film Transformers One and the international release of the Beyblade X anime series as key drivers for new revenue growth during the holiday season for both its entertainment and CP segments.