Online shopping and the world’s lean into family gaming throughout the pandemic have helped global entertainment company, Hasbro maintain a steady ship on 2020’s waters as the firm hit $1bn in ecommerce revenue for the first time last year.
Increased revenue across Hasbro Gaming and Hasbro entire gaming catalogue, including Wizards of the Coast and Dungeons of Dragons, have helped the toy maker maintain an even keel over the course of what’s been billed ‘a most challenging year.’
The pandemic has forced a year of changes most notably across the physical retail space and the TV and film sector. It comes as no surprise then, that in its full year 2020 financials, Hasbro has reported a decrease in film and TV revenues through its eOne segment, as well as lower Family Brands revenue due to retail disruption.
However, the global business did see a marked uptick in its ecommerce business that, for the first time in its history, hit the $1bn mark as shoppers have turned to online purchasing in response to lockdown restrictions.
Meanwhile, Revenues in Hasbro Gaming grew 21 per cent while revenues across its total gaming category picked up 20 per cent, and while net revenues for the full year 2020 dipped eight per cent year on year, the surge in ecommerce witnessed an increase of 43 per cent to hit the $1bn mark.
Hasbro bosses have credited the team’s resilience, tenacity, creativity, flexibility, and empathy’ for seeing it through what CEO Brian Goldner called ‘a most challenging year.’
“Our teams successfully drove demand for several product categories across our portfolio including our entire gaming portfolio from Wizards of the Coast brands to face-to-face gaming,” said Brian Goldner, Hasbro’s chairman and chief executive officer.
“They found ways to reach the global consumer despite retail closures throughout the year, delivering over $1bn in ecommerce revenues for the first time. We leveraged our global supply chain capabilities and our evolving geographic manufacturing supplier base to get products made and distributed.
“We integrated our acquisition of eOne and while live-action TV and film production was limited, we made substantial progress developing Hasbro IP for storytelling that we believe will lead to enhanced revenues and earnings power from Hasbro brands from multiple income streams.
“We developed toy and game lines for valuable pre-school brands Peppa Pig and PJ Masks to launch later this year. We concentrated on managing expenses and cash, growing adjusted operating profit margins and finishing the year with $1.45bn in cash on our balance sheet.”
Fourth quarter 2020 revenues four per cent which included growth across its franchise brands such as Magic: The Gathering, Monopoly, and Nerf, as well as products for the Star Wars and The Mandalorian franchises, and Hasbro Gaming. Dungeons and Dragons also saw a standout year.
Deborah Thomas, Hasbro’s chief financial officer, added: “Throughout 2020, the global Hasbro team did an excellent job executing in a challenging environment. In the fourth quarter, we grew revenues and adjusted operating profit, overcoming tough comparisons within the Partner Brand category and last year’s theatrical releases.
“Our focus on working capital and expense management delivered $976.3 million in operating cash flow for the year, and as part of our commitment to paying down our debt, we repaid $123 million of the debt we raised to finance the eOne acquisition.
“We continue to see strong retail, consumer and audience support for our brands and content as we look to the coming year. Global points of sale increased last year, despite lockdowns and retail disruption, and 2021 is starting with a strong year-over-year momentum.”