Hasbro Ups Q2 Profit 30%24 Jul, 2017 By: Erik Gruenwedel
Hasbro July 24 said second-quarter (ended July 2) income increased 30% to $67.7 million, from $49.4 million during the previous-year period. Global revenue grew 11% to 972.5 million, from $879 million a year ago.
The toys and gaming manufacturer attributed the growth to diversifying its product offering from toys and games to television, movies, digital gaming and consumer products.
Hasbro, in recent years, created gaming content for Netflix, in addition to inking distribution deals with Shout! Factory. In June it launched a subscription service for packaged games delivered to the home.
Story-led brands and innovative brand initiatives drove revenue growth and an increase in operating profit margin. Franchise brands include "Transformers," "Magic: The Gathering," "Nerf" and "Monopoly," among others.
Action figure line “Stretch Armstrong” reportedly was selected by Netflix for a 26-episode animated series making it the first deal between Hasbro and the streaming service.
“Our balance sheet and cash flows remain strong. While we are seeing some softness in economic conditions in Brazil and the U.K., our brands continue to resonate with consumers,” CFO Deborah Thomas said in a statement. “We are well positioned with innovative new product driven by strong entertainment as we enter the second half of the year.”