Wizards of the Coast and consumer products drive ‘excellent Q2’ for Hasbro as sales surge 54 per cent

Hasbro has seen record releases across its Wizards of the Coast and Digital Gaming segment, as well as increased sales within its consumer products division fuel the global entertainment through a stellar second quarter this year.

Sales have surged by 54 per cent on Q2 2020, and nine per cent pro forma 2019 to hit $1.32 billion throughout what Hasbro boss, Brian Goldner has billed as ‘an excellent quarter’ for the toy firm. Its consumer products segment saw revenues increase 33 per cent.

Meanwhile, Hasbro’s Wizards of the Coast and Digital Gaming sement more than doubled, fuelled by ‘record releases’ in Q2 in Magic: The Gathering Strixhaven and the second installment of its Magic: The Gathering Modern Horizons narrative, Modern Horizons 2.

Chairman and chief executive officer, Goldner, said: “Hasbro delivered an excellent second quarter, with revenues up 54 per cent versus the second quarter of last year, and nine per cent versus pro forma second quarter 2019.

“Wizards continued to generate outstanding results behind a compelling analog and digital release schedule for Magic: The Gathering. Consumer products revenue increased as demand remains robust for Hasbro toys and games and entertainment revenue grew as we are producing entertainment with strong deliveries.”

The CEO praised the Hasbro team and its high level of performance as it ‘tracks to its target of double digit revenue growth for the full year.’

The quarter’s strong results have been reflected in each Brand Portfolio category under the Hasbro business, with gains witnessed across Magic: The Gathering, NERF, Transformers, Play-Doh, Baby Alive, and My Little Pony. Partner brands revenue increased behind growth in Hasbro products for the Marvel portfolio, Lucasfilm’s Star Wars and The Mandalorian, Disney Princess and Beyblade.

Meanwhile, Hasbro Gaming saw revenue increase on 2020 and 2019, led by Dungeons & Dragons and Duel Masters, as well as a the launch of Foosketball.

In the consumer products segment, revenue and operating profit grew in Hasbro Franchise Brands NERF, Transformers, and Play-Doh, as well as products for Marvel and Star Wars. Point of sale for toys increased, but was off-set by a decline in games point of sale compared to the sector’s strong performance on Q2 2020.

Elsewhere, and it was in the Wizards of the Coast and Digital Gaming segment in which records were set. Wizards had two record releases in Q2 in Magic: The Gathering Strixhaven and Modern Horizons 2.

Deborah Thomas, Hasbro’s chief financial officer, said: “Strength across Hasbro’s brands and business backed by strong execution from the entire team drove superb results for our second quarter.

“As we invest to unlock value from our brands across the blueprint, we are on track to reach our objectives for the year while expanding the reach of our business, reducing debt, and paying our dividend. The discipline in our business is evident from the $1.2 billion in cash we had on hand at quarter end, reporting the lowest days sales outstanding in our recent history, and repaying $250 million in debt.”

Toys and Consumer Products revenue lifts as WWE negotiates Coronavirus fall-out

The chairman and CEO of the sport and entertainment franchise, WWE, has championed the business’ creativity throughout a challenging environment, highlighted a strong performance for the brand in its third quarter financials.

WWE has been among the hardest hit by the coronavirus pandemic that has rendered live events – the model upon which WWE generates a majority of its income – impossible to maintain to the same volume and capacity of live audiences as pre-Covid times. Despite the impact that has driven a 97 per cent decrease in revenue generated by live events, the organisation remains optimistic.

Consolidated results see the franchise hit third quarter revenue of $221.6 million, an increase of 19 per cent – or $35.3 million – on the same period last year, that has been primarily driven by the growth of core content rights fees in the media segment. This revenue was partially off-set by the loss of ticket and merchandise sales that resulted from the cancellation, postponement and relocation of its live events.

Revenue generated from live events plunged to $0.7 million.

However, the brand’s consumer products sales witnessed a revenue increase of 17 per cent on Q3 2019, taking it to $19.9 million in reflection of increased merchandise sales at the Company’s e-commerce site, WWE Shop, and higher video game and toy royalties. Increased sales via its e-commerce platform substantially off-set the absence of venue merchandise sales resulting from the absence of ticketed audience events in the quarter.

“Our third quarter financial performance was strong and reflected our ongoing creativity in a challenging environment,” said Vince McMahon, WWE chairman and CEO. “We continue to adapt our business, as demonstrated by the creation of WWE ThunderDome, focusing on increasing audience interaction and engagement to support the value of our content globally.”

Kristina Salen, WWE chief financial officer, added: “In the quarter, we delivered revenue of $221.6 million and Adjusted OIBDA of $84.3 million based on increased rights fees for the Company’s flagship programming. With $638 million in cash and short-term investments at quarter-end, we believe WWE has substantial capital resources to manage challenges that may lie ahead and to deliver on key strategic initiatives.”

Net Income for the WWE business was $48.2 million, an increase from $5.8 million in the third quarter 2019, primarily reflecting stronger operating performance.