'Transformers: The Last Knight' Home Entertainment Sales Help Drive Hasbro Q3 Results23 Oct, 2017 By: Erik Gruenwedel
Hasbro Oct. 23 reported third-quarter (ended Oct. 1) entertainment and licensing operating profit of $16.9 million on revenue of $58.4 million, up 20% from operating profit of $14.1 million on revenue of $56.1 million during the previous-year period.
The toy manufacturer cited disc sales from the Sept. 28 release of Transformers: The Last Knight, in addition to license revenue from Cartoon Network’s animated series “Transformers: Robots in Disguise” and “Transformers: Rescue Bots,” for the 4% increase.
Paramount Home Media Distribution distributes The Last Knight at retail.
On the fiscal call, CEO Brian Goldner reiterated the strength of the "Transformers" brand across Hasbro’s product lines.
“The film was successful in reinvigorating and energizing our core consumer base and our fan base, while inviting new fans into the brand,” Goldner said.
The executive said the movie’s pending release in a number of international markets followed by home entertainment are key elements to expanding the brand’s audience.
The quarter’s results did not include My Little Pony: The Movie, which has generated almost $30 million at the global box office since its Oct. 6 theatrical release.
Goldner said Pony was made on modest budget and continues to drive consumer products, toys and games.
“That combination of storytelling between stream content, television content and the film is a great formula for the brand. So we feel very good about the brand heading into the holidays in 2018,” he said.
Overall, net earnings increased 3% to $265.6 million, on revenue of $1.79 billion, up 7% from a year ago. U.S. and Canada revenue increased 7% to $993.8 million, from $932.8 million. International revenue rose 7% to $739.2 million, from $690.7 million.
Separately, Goldner admitted the recent bankruptcy of Toys “R” Us domestically and in Canada would impact results in the near term.
“The quarter presented several obstacles, but the team delivered with higher revenue and earnings,” he said.