Hasbro shares slide despite lockdown board game boost
Shares in toy maker Hasbro dropped 10 per cent today as declining revenue from its film and TV operations offset a bumper performance by its board games business.
Hasbro reported net revenue of $1.8bn (£1.4bn) in the third quarter, down four per cent on the same period last year.
The figure came in ahead of analysts’ forecasts at the US toy giant, which owns brands including Monopoly and Twister, enjoyed a spike in board game sales during the coronavirus lockdown.
But this was offset by a sharp decline in the company’s film and TV unit after the pandemic put productions across the world on hold.
Hasbro last year stumped up £3.3bn to Peppa Pig owner Entertainment One in a bid to expand its portfolio and generate additional revenue from character-based films and TV shows.
But revenue from film,TV and entertainment slumped 28 per cent over the quarter as a result of the Covid-19 crisis, and Hasbro warned of a lack of a major film release to boost toy sales over the festive period.
Analysts said the share price drop may also reflect the strong performance by rival toy maker Mattel, which last week smashed revenue and profit forecasts for the third quarter.
Mattel, whose brands including Barbie dolls and Hot Wheels cars, beat sales estimates by nearly $200m and closed the revenue gap on its larger competitor.
“Building off this quarter’s growth in toys, games and digital we are positioned to deliver a good holiday season,” said Hasbro chairman and chief executive Brian Goldner.
“While Covid-19 remains a factor in our global operations, consumers remain engaged in activities that create joy and personal connections and we are working purposefully to deliver them the world’s best play and entertainment experiences, while remaining focused on the safety and well-being of our global teams and communities.”