In this news, we discuss the Hasbro revenue slips on production delays in movies, TV shows, shares fall.
(Reuters) – Hasbro Inc HAS.O reported a 4% drop in adjusted revenue on Monday as coronavirus delays in film and TV production hit its entertainment unit, removing the bursting with its booming board game business and sending its shares down 10%.
The company’s decline in overall sales in the third quarter, excluding the acquisition of maker “Peppa Pig” Entertainment One, contrasts with rival Mattel MAT.O, which last week saw net sales growth of nearly 10%. % for the same period.
Hasbro has attempted to expand its revenue base by making movies, TV shows and video games based on the characters it owns, but the coronavirus crisis has highlighted the risk of this gamble, with studios being forced to delay projects for several months.
Revenue on this side of Hasbro’s business fell 28% in the third quarter.
Analysts at MKM Partners attributed part of the drop in Hasbro shares on Monday to heightened expectations after Mattel easily beat sales and earnings forecasts amid strong demand for its line of Barbie dolls.
Hasbro reported third-quarter net sales of $ 1.78 billion, beating analysts’ estimates of $ 1.75 billion, according to IBES data from Refinitiv.
However, Mattel, which still relies almost entirely on traditional toy sales, beat estimates by nearly $ 200 million, while closing the revenue gap over its biggest rival.
Still, total revenues for all of Hasbro’s gaming brands, including Monopoly, Scrabble and Dungeons & Dragons, jumped 21%, with families stuck at home spending more on board games.
Hasbro said its adjusted profits could rise in the fourth quarter, but warned that the absence of a blockbuster children’s film during the holiday season could put pressure on some toy sales.
Third quarter net income attributable to the company increased 3.7% to $ 220.9 million. On an adjusted basis, Hasbro posted earnings of $ 1.88 per share, beating estimates of $ 1.63.
Reporting by Uday Sampath in Bengaluru; Edited by Anil D’Silva
Original © Thomson Reuters