Hasbro revenue down, WotC revenue up in company's latest Financial Results

Despite Hasbro reporting a revenue loss of ten percent over the quarter, the company's Wizards of the Coast segment shows a 40 percent gain according to their latest financial report.

Hasbro showed declines in Consumer Products (-18%) and Entertainment (-42%), quarter-over.  Despite WotC's success since the previous quarter, it was not enough to cover the company's losses in other areas.  That said, Hasbro CEO Chris Cocks remains optimistic.

“Our third quarter results highlight the strength of Hasbro’s diversified toy and game portfolio and the progress we have made on our transformation,” he said. “Wizards of the Coast and Digital Gaming delivered a standout performance across strength in Magic: The Gathering and Dungeons & Dragons, particularly the blockbuster August release of Baldur's Gate III."

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

They also say that tabletop revenue increased 18% behind growth in MTG, including the releases of Wilds of Eldraine and Commander Masters.  Continued strong sales of MTG's Universes Beyond  sub-brand also showed promise thanks to the release of the The Lord of the Rings: Tales of Middle-Earth sets.

As for operating profit, it grew 99% and operating profit margin of 48.0% was +14.3 margin points versus last year behind high-margin digital gaming revenue and growth in Magic: The Gathering.

“We believe in the long-term growth potential of toys and are leaning in," Cocks says.  "Our plan for Q4 is to drive share over the holiday, exit the year with clean inventory, a much-improved corporate overhead, and a clear runway for introducing new product innovation and go to market support in the quarters ahead.” 

Year-over, Hasbro is showing an eleven percent loss in net revenue with an operating profits and net earnings loss of more than 100 percent.

Barry White

Barry White is a longtime Magic: The Gathering player, having started in 1994 shortly before the release of 'Fallen Empires.' After graduating from the University of Nevada, Reno, he went on to a 15-year journalism career as a writer, reporter, and videographer for three different ABC affiliate newsrooms.