Last Updated on January 3, 2020 by Danielle
Hasbro reported a four percent increase in full-year net revenue, driven by strong performance from franchise brands like Transformers, Nerf, and Hasbro Gaming.
Hasbro reported a four percent revenue increase for all of last year. Net revenue increased from $5.02 billion in 2016 to $5.21 billion in 2017.
So what drove Hasbro’s growth?
First, Hasbro was positively impacted by favorable foreign exchange to the tune of $7.92 million.
However, a large majority of their growth was attributed to Hasbro’s franchise brands, Hasbro Gaming, and its emerging brands, which is inclusive of immersive brand experiences in consumer products and digital gaming.
Brian Goldner, Hasbro’s CEO stated: “Our strong performance ranked Hasbro number one across the G11 markets for the full-year 2017.”
“In the fourth quarter, Hasbro Franchises Brand revenues increased 11 percent. However, overall consumer demand slowed in November and December both for the industry and for Hasbro. A decline in partner brands and Europe revenues resulted in us not meeting our fourth quarter revenue expectations.”
“Looking ahead, our innovative lines are supported by robust storytelling and digital initiatives that position us well for 2018 and beyond,” said Goldner.
Considering the last five years, Hasbro has generated over one billion in revenue, driven four consecutive years of revenue growth, and has increased operating profit, net earnings and driven significant cash flow.
“Hasbro is in strong financial position with the cash and profitability to invest in growing our business for the long term,” said Deborah Thomas, Hasbro’s CFO. “Our team’s excellent job of understanding and assessing the global tax environment and managing risks contributed to strong underlying net earnings growth,” she said.
Hasbro’s entertainment and licensing division experienced an eight percent increase, rising from $265.2 million in 2016 to $285.6 million in 2017. Growth in the consumer product and digital gaming category coupled with the Boulder Media addition helped to drive full-year growth.
Hasbro’s gaming category, which includes hits like Monopoly and Magic: The Gathering, generated $546.4 million in Q4 2017 – representing a five percent increase year over year.
Meanwhile, partner brand revenues declined by 10 percent to $1.27 billion. Interestingly, Beyblade, Marvel, and Sesame Street revenue gains were offset by revenue declines for popular brands, such as Star Wars, Yo-Kai Watch, and Disney Frozen. Hasbro claims Star Wars’ lukewarm sales were due to a merchandising error on the company’s part. They merchandised the Star Wars toys to far in advance to the movie’s release and they quickly lost momentum.
On the other hand, revenue for Hasbro Gaming rose 10 percent, rising to $893 million. Social games such as Speak Out, Toilet Trouble, and Fantastic Gymnastics helped drive growth. Other contributing factors included growth in Dungeons and Dragons, Dropmix’s launch, as well as digital gaming.
Source: Toy News