The Transformers franchise and the tabletop phenomenon Magic: The Gathering have helped Hasbro to first quarter profit as the global toymaker’s revenues exceed forecasts.
Net revenues have jumped two per cent from one year ago to hit $732.5 million, marking the first of such increase in six consecutive quarters. The form has pointed towards the success of its Bumblebee movie a key driver of the growth.
The Transformers spin-off movie was launched late in December and has recently become available for home viewing.
“Equally important, it is successfully introducing Transformers to a new generation of kids and re-engaging our core fans around the world,” said Hasbro’s chief executive Brian Goldner.
The company has also credited its Magic: The Gathering franchise, stating that its “long-term investments in new platforms provided a meaningful contribution from our digital and esports initiative, Magic: The Gathering Arena, as well as growth in Magic: The Gathering tabletop revenues.”
Meanwhile, pop culture phenomena such as Game of Thrones and Fortnite have bolstered sales across Hasbro’s Monopoly brand.
First quarter net earnings have now come in at $26,7 million compared with a net loss of $11.2 million in the same quarter one year ago. The results of the year prior were reflective of market conditions that included the collapse of Toys R Us.
Hasbro is now confident of its return to profitability for the remainder of the year, stating in an earnings call that “progress is starting to take hold in the second quarter.”
Hasbro now appears to be gradually recovering from the fallout of the Toys R Us bankruptcy and resulting liquidated inventory in the market.