After losses in the previous year, Hasbro posted a profit of over 26 million dollars in the first quarter. The main contributors to sales were Monopoly, Play-Doh and Transformers.

This was a good start to the year for the American toy giant Hasbro. That was also necessary, because the balance for 2018 was hail. The company had to report a net loss of 61.4 million US dollars for last year. The main reasons for this were bad debts in connection with Toys “R “Us as well as severance costs amounting to 15.7 million dollars due to the transformation of the company organization. In addition, the US tax reform “Non-GAAP Adjustments” had a net impact of 47.8 million dollars. This makes it all the more pleasing that the first quarter of 2019 is now showing signs of success. Brian Goldner, Chairman and CEO of Hasbro: “The global Hasbro team is doing an excellent job and has made a good start to the year”.

Hasbro successful with e-sports and classic games

Our long-term investments in new platforms made a significant contribution to our digital and e-sports initiative Magic: The Gathering Arena and to the revenue growth of Magic: The Gathering Tabletop. In addition, Monopoly, Play-Doh and Transformers were among the brands that achieved revenue growth in this quarter. We are beginning to see an improvement in our markets, particularly in the US and Europe. Operating income was driven by high margin growth in sales and our cost reduction activities. With most of the year ahead of us, we remain on track to achieve profitable growth for the full year 2019″. What exactly this means, said Deborah Thomas, Chief Financial Officer of Hasbro: “We expect full-year net cost savings of $50 to $55 million, as we announced in February. Our balance sheet is solid and we continue to invest in areas focused on long-term profitable growth”.

Individual Hasbro brands performed particularly well

A detailed look at the sales report shows the extent to which individual brands contributed to the positive development. Net sales in the Entertainment, Licensing and Digital segment increased by 24 percent to USD 92.0 million. Sales growth here was driven by Magic: The Gathering Arena and license revenues for consumer goods. Hasbro Gaming’s sales increased by two percent to 107.6 million US dollars. Duel Masters, Connect 4 and Twister were among the games that contributed to sales growth in this category. The franchise brands were also in demand, with sales increasing by 9 percent to USD 393.6 million.

 

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Link: The US toy company Hasbro has started the year in the black.

Image: Hasbro

//KH