Despite an overall decline in revenue by 24% compared to the first quarter of 2023, primarily attributed to the eOne film and television divestiture, Hasbro witnessed growth in certain segments. The Wizards of the Coast and Digital Gaming segment experienced a surge of 7%, while Entertainment saw a 65% increase. However, these gains were partially offset by a 21% decrease in Consumer Products revenue. Excluding the divestiture, revenue fell by 9%.
The company’s operating profit reached $116.2 million, representing an operating margin of 15.3%. Notably, adjusted operating profit significantly increased to $148.6 million, which is $101.4 million higher than the previous year, and the adjusted operating margin improved to 19.6%.
Hasbro CEO Chris Cocks attributed the quarter’s success to the strength of the company’s brands and its ongoing transformation efforts, stating, “Performance from our licensing portfolio shows the strength of our brands, and we continue to fuel innovation in games and toys as we expand our reach across play patterns to fans of all ages.” CFO Gina Goetter highlighted the company’s solid progress in its turnaround efforts, with revenue landing as expected and a significant improvement in operating profit, driven by the operational excellence program and an improved business mix.
For the full year, Hasbro maintains its annual guidance, expecting Consumer Products Segment revenue to decline by 7% to 12%, Wizards of the Coast Segment revenue to decrease by 3% to 5%, and the Pro-Forma Entertainment segment revenue to drop by $15 million. The company aims for an adjusted operating margin of approximately 60% and an adjusted EBITDA of $925 million to $1 billion.
In addition to the strong earnings report, Hasbro also announced distributing $97.2 million in dividends to shareholders during the quarter. The company plans to continue returning cash through dividends while paying down debt to reach its leverage target. Investors’ confidence seemed bolstered by the company’s cost-saving initiatives and its commitment to investing in its core business, as reflected in the stock’s upward movement.
