Hasbro reports 3rd quarter 2023 financial results

Hasbro, Inc. today reported financial results for the third quarter 2023.

Declined revenue

Q3 Hasbro, Inc. revenue declined 10% with significant growth in Wizards of the Coast and Digital Gaming segment (+40%) not able to offset the declines in Consumer Products (-18%) and Entertainment (-42%).

An overview

Wizards of the Coast revenue growth driven by the success of licensed digital games Baldur’s Gate III and Monopoly Go! which drove $63 million of incremental revenue in Q3.

Consumer Product revenue decline result of exited licenses and softer category trends; share increased across four of the five focus categories.

Operating profit loss of $169.5 million; Adjusted operating profit of $342.6 million; Adjusted operating profit margin of 22.8% was +6.7 margin points ahead of last year due to the mix benefit from the growth in licensed digital games and cost savings outpacing inflation.

Planned sale of eOne Film and TV business

Adjusted results exclude the pre-tax impact of loss on assets held for sale of $473 million related to the planned sale of the eOne Film and TV business.

Sale of eOne Film and TV business on track to close by end of the year.

$200 million of gross cot savings

On track to deliver approximately $200 million of gross cost savings in 2023 as part of Operational Excellence initiative.

Reduced owned inventory 27%, including a 34% decline in Consumer Products inventory.

Updated 2023 guidance reflects impact of lower revenue outlook for Consumer Products segment; no change to outlook for Wizards of the Coast and Digital Gaming or Entertainment segments.

Source: de.finance.yahoo.com