Hasbro Surpasses Q2 Expectations Amid Digital Gaming Growth

Toy giant Hasbro reported a strong performance for the second quarter, exceeding Wall Street expectations largely due to a surge in its digital gaming segment. Shares rose over 3% in afternoon trading following the announcement. For the quarter ending June 30, Hasbro posted adjusted earnings per share of $1.22, significantly higher than the anticipated 78 cents, and revenue of $995 million, surpassing the expected $944 million. The company recorded a net income of $138.5 million, or 99 cents per share, a remarkable turnaround from the same period last year when it faced a net loss of $235 million, or $1.69 per share. Despite an overall revenue decline of 18%, Hasbro's Wizards of the Coast and digital gaming segment experienced a 20% revenue increase, driven by the successful launch of the Magic card game, Modern Horizons 3, and popular titles like Monopoly Go! and Baldur's Gate 3. CEO Chris Cocks emphasized the company's commitment to expanding its digital gaming portfolio, noting the recent appointment of John Hight as president of Wizards of the Coast and digital gaming. Cocks stated, "We're going all in on becoming a digital play company," highlighting the strategic focus on digital growth. Looking ahead, Hasbro anticipates further revenue declines for the full year, projecting a 7% to 11% drop in consumer product revenue and a 1% to 3% decrease in Wizards of the Coast revenue. The company estimates total adjusted EBITDA for the year to be between $975 million and $1.025 billion.