Hasbro reported financial results for the second quarter 2024 on Thursday 25 July. It beat Wall Street expectations for Q2, thanks in part to growth in its digital gaming segment. In fact Hasbro CEO, Chris Cocks, said in the earnings conference call: “We’re going all in on becoming a digital play company.”
Net income was USD 138.5 million, which was a significant gain compared with the same quarter last year, when Hasbro reported a net loss of USD 235 million. The operating profit was USD 212 million, with an operating margin of 21.3%. The adjusted operating profit was USD 248.8 million – the healthy adjustment was primarily due to a favourable business mix and supply chain more than offsetting inflation and operating costs.
“We delivered a solid performance in games and digital licensing and substantial margin improvement this quarter. Hasbro is emerging as a more profitable, agile, and operationally excellent company”
Revenue fell 18% due primarily to the late 2023 sale of eOne to Lionsgate. Excluding that sale the revenue decline was just 6%. Growth of 20% in the Wizards of the Coast and Digital Gaming segment was offset by declines in Consumer Products (-20%) and Entertainment (-90%, or -30%, excluding the eOne sale).
Chris Cocks said: “We delivered a solid performance in games and digital licensing and substantial margin improvement this quarter. Hasbro is emerging as a more profitable, agile, and operationally excellent company delighting fans of all ages through the magic of play.”
Chief financial officer, Gina Goetter, said: “We continued to make meaningful progress in our turnaround for consumer products in the second quarter. The Hasbro team remains focused on back half execution and delivering on our updated full year commitments.”
Shares rose over 4% in early trading.
