Hasbro board games are seen for sale at a Target store on December 12, 2023 in Austin, Texas.
Brandon Bell | Getty Images
Toy company Hasbro beat Wall Street expectations for the second quarter on Thursday, thanks in part to growth in its digital gaming segment.
The company's shares rose more than 3% in afternoon trading.
Here's how Hasbro performed in the quarter ended June 30 compared with what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted $1.22 vs. 78 cents expected
- Revenue: $995 million versus the expected $944 million
Hasbro reported net income of $138.5 million, or 99 cents per share, for the quarter. That was a significant gain from the year-ago quarter, when the company reported a net loss of $235 million, or $1.69 per share.
Although Hasbro’s revenue was down 18% overall during the quarter, its digital gaming and Wizards of the Coast segment saw revenue growth of 20%. This partially offset a 20% drop in consumer products revenue, as well as a 90% decline in the company’s entertainment segment, driven by the divestment of production studio eOne.
Hasbro attributed the surge in Wizards of the Coast and digital gaming revenue to the launch of the Magic card game, Modern Horizons 3, and the continued impact of licensed and digital games, with Monopoly Go! leading the way alongside Baldur's Gate 3.
CEO Chris Cocks said during the company's earnings call that it continues to invest in its digital games portfolio, highlighting the recent appointment of John Hight as president of Wizards of the Coast and digital games.
“Between the board change and the talent we've brought in, most recently John… we're putting everything into becoming a digital games company,” Cocks said.
Hasbro anticipates further revenue declines for the full year, with consumer products revenue projected to fall between 7% and 11% and Wizards of the Coast revenue to fall between 1% and 3%.
The company estimates full-year adjusted EBITDA of between $975 million and $1.025 billion. Hasbro also expects to reduce costs by $750 million by the end of 2025.
