First Images Revealed of Warner Bros. World Abu Dhabi Entertainment Theme Park
Miral, Abu Dhabi’s leading creator of destinations, announced that Warner Bros. World Abu Dhabi will feature six immersive worlds: Metropolis and Gotham City, inspired by the universe of DC Super Heroes and Super-Villains; Cartoon Junction, Bedrock, and Dynamite Gulch, themed after iconic animated brands such as Looney Tunes and Hanna-Barbera; and Warner Bros. Plaza, reminiscent of old Hollywood.
Warner Bros. World Abu Dhabi, set to open in 2018, will be a one-of-a-kind destination, home to thrill rides, interactive family-friendly attractions, and live entertainment.
Situated on Yas Island, one of the world’s leading business, leisure and entertainment destinations, construction of the park is well underway, surpassing production expectations. The project has engaged 5,500 specialist engineers, workers and craftsmen to build a park that will span 1.65 million square feet. Warner Bros. World Abu Dhabi will be a fully immersive experience of six worlds comprised of 29 rides, shows, and attractions.
Warner Bros. World Abu Dhabi, developed in partnership with Warner Bros. Consumer Products and DC Entertainment will complement Miral’s Yas Island destination portfolio of themed parks. This includes Ferrari World Abu Dhabi, Yas Waterworld, CLYMB, and opening in 2022, the recently announced SeaWorld Abu Dhabi. Yas Island also offers a wide range of sporting and entertainment experiences including Yas Marina Circuit, seven hotels, year-round events, a live performance and concert arena, 18-hole championship golf course, marina, beach, and the increasingly popular shopping destination, Yas Mall.
DC Entertainment to Launch Digital Service With Titans, Young Justice Series
Warner Bros. Television and DC Entertainment announced the live-action drama series Titans, which follows a group of young soon-to-be superheroes recruited from every corner of the DC Universe, will debut in 2018 alongside the third season of Warner Bros. Animation’s Young Justice: Outsiders. Both series are in early stages of production and will air exclusively on a DC-branded direct-to-consumer digital service in 2018. Operated by Warner Bros. Digital Networks Group, the new digital service will deliver an immersive experience designed just for DC fans.
Hasbro Reports Revenue, Net Earnings Growth for Q1 2017
Hasbro reported its financial results for the first quarter 2017. Net revenues for the first quarter 2017 increased 2 percent to $849.7 million versus $831.2 million in 2016.
Net earnings for the first quarter 2017 increased 41 percent to $68.6 million, or $0.54 per diluted share, compared to $48.8 million, or $0.38 per diluted share, in 2016. Reported net earnings include a $0.11 per diluted share benefit versus first quarter 2016 from the adoption of FASB ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The Q1 2017 was a 14-week period versus the first quarter 2016, which was a 13-week period. Given the timing of the week, the extra week adds an additional week of expense, but does not contribute a comparable level of revenue.
First Quarter 2017 Major Segment Performance
First quarter 2017 U.S. and Canada segment net revenues increased 2 percent to $451.6 million compared to $443.6 million in 2016. Revenue growth in Hasbro Gaming and Emerging Brands offset a decline in Franchise Brands and Partner Brands. The U.S. and Canada segment reported operating profit of $64.8 million, or 14.3% of net revenues, compared to $78.3 million, or 17.7 percent of net revenues, in 2016.
International segment net revenues of $345.3 million were essentially flat with $345.0 million in 2016. First quarter 2017 International segment revenues include a favorable $3.0 million impact of foreign exchange. Revenue growth in Franchise Brands, Hasbro Gaming and Emerging Brands was offset by a decline in Partner Brands. On a regional basis, Europe revenues declined 4 percent, Latin America increased 16 percent and Asia Pacific declined 1 percent. Emerging markets revenues increased 20 percent in the quarter. International segment operating profit was $0.5 million compared to $2.9 million in 2016.
Entertainment and Licensing segment net revenues increased 24 percent to $52.7 million compared to $42.5 million in 2016. Digital gaming drove the quarterly revenue increase, including higher revenues at Backflip Studios. The Entertainment and Licensing segment operating profit increased 108 percent to $11.3 million, or 21.5 percent of net revenues, compared to $5.4 million, or 12.8 percent of net revenues, in 2016.
First Quarter 2017 Brand Portfolio Performance
Hasbro’s total gaming category, including all gaming revenue, most notably Magic: The Gathering and Monopoly, which are included in Franchise Brands, totaled $253.3 million for the first quarter 2017, up 10 percent, versus $231.1 million in the first quarter 2016. Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety. First quarter 2017 Franchise Brand revenues increased 2 percent to $423.6 million driven by revenue growth in Nerf, Transformers, and Monopoly.
Partner Brand revenues declined 18 percent to $213.0 million. Revenue growth from Beyblade and DreamWorks’ Trolls was more than offset by expected declines in Star Wars and Marvels ahead of major theatrical releases later this year.
Hasbro Gaming posted 43 percent revenue growth to $142.9 million driven by Hasbro’s diverse gaming portfolio. The strong revenue increase was led by several new games, including Speak Out, Toilet Trouble and Fantastic Gymnastics, digital gaming, and several other gaming brands, including Dungeons & Dragons, Bop-It, and Pie Face. Hasbro’s total gaming category grew 10 percent to $253.3 million.
Emerging Brands revenue grew 25 percent to $70.2 million. Revenue increases from Baby Alive and Furreal Friends products were the primary contributors to growth in the quarter.
For more information on Hasbro’s Q1 Results and Earnings, click here.
Jakks Pacific Reports Losses for Q1 2017
Jakks Pacific reported financial results for the first quarter ended March 31, 2017. Net sales for the first quarter were $94.5 million compared to $95.8 million reported in the comparable period in 2016. The net loss attributable to Jakks Pacific for the first quarter was $18.3 million, or $1.01 per diluted share. This compares to a net loss attributable to Jakks Pacific of $17.4 million, or $1.01 per diluted share, reported in the comparable period in 2016. Adjusted EBITDA for the first quarter was negative $10.6 million, compared to Adjusted EBITDA of negative $9.2 million in 2016.
Gross margin in the first quarter was 31.8 percent, down slightly from 32.5 percent last year as a result of pricing pressure on Funnoodle pool toys and higher tooling amortization on increased capital expenditures in 2016 offset in part by lower royalties resulting from a shift in product mix.
Operating income declined in part due to incremental overhead and startup costs associated with its C’est Moi makeup and skincare product line acquired in 2016 and Studio JP, its animation initiative, as well as increased testing costs related to the expansion of sales of certain products in International markets, offset in part by lower media buys.
As of March 31, 2017, the company’s working capital was $196.5 million, including cash and cash equivalents and restricted cash of $68.0 million, compared to working capital of $226.9 million, including cash and cash equivalents of $118.9 million in the year ago period.
For 2017, the company continues to expect higher net income, earnings per share and Adjusted EBITDA on lower net sales compared to 2016. The company expects improved profitability in 2017 to result from a continued focus on building its base of evergreen brands and categories as well as entering new categories, creating a strong portfolio of new and existing licenses, and developing owned IP and content.
Convertible Senior Note Retirement
During the first quarter, the company exchanged and retired a total of $39.1 million principal amount of its 2018 Notes for approximately 2.9 million shares of common stock and $24.1 million in cash. The remaining principal amount of these Notes of $54.7 million will continue to be addressed ahead of their maturity in August 2018.
Sale of Common Stock
The Company expects to complete the previously announced sale of approximately 3.7 million shares of its common stock in the next few days to its Chinese distribution and animation joint venture partner for cash in the amount of $19.3 million.
Mattel Reports Q1 Losses for 2017
For the first quarter of 2017, net sales and gross sales were down 15 percent as reported and in constant currency versus the prior year’s first quarter. Reported operating loss was $127.0 million, and adjusted operating loss was $122.1 million. Reported loss per share was $0.33, and adjusted loss per share was $0.32.
For the first quarter, net sales in the North American Region decreased by 23 percent as reported and in constant currency, versus the prior year’s first quarter; gross sales in the North American Region decreased by 24 percent as reported and in constant currency. In the International Region, net sales decreased by 2 percent as reported, and decreased by 1 percent in constant currency; gross sales in the International Region decreased by 2 percent as reported, and were flat in constant currency. Gross margin for the quarter decreased 680 basis points, driven mainly by higher obsolescence expense, unfavorable impact of fixed cost absorption due to lower sales, unfavorable foreign currency and lower licensing income. Reported other selling and administrative expenses decreased $18.7 million; adjusted other selling and administrative expenses for the quarter decreased $13.1 million, reflecting continuous cost improvement initiatives and favorable foreign exchange. Reported operating loss for the quarter was $127.0 million, compared to the prior year’s first quarter reported operating loss of $49.1 million. Adjusted operating loss for the quarter was $122.1 million, compared to the prior year’s first quarter adjusted operating loss of $38.6 million.
For the quarter, net cash flows used for operating activities were approximately $310 million, an increase of approximately $221 million versus the prior year’s first quarter, primarily driven by higher working capital usage and higher net loss. Cash flows used for investing activities were approximately $45 million, a decrease of approximately $10 million versus the prior year’s first quarter, primarily driven by a decrease in payments for acquisitions, partially offset by changes in foreign currency forward exchange contracts for the year. For the quarter, cash flows used for financing activities and other were approximately $133 million, compared to approximately $149 million in the prior year’s first quarter, primarily driven by lower proceeds from the exercise of stock options.
The company’s debt-to-total capital ratio as of March 31, 2017 was 51.1 percent. The Board of Directors declared a 2017 second quarter cash dividend of $0.38 per share, which is flat compared to the second quarter of 2016. The dividend will be payable on June 9, 2017 to stockholders of record on May 19, 2017.
For the full report and sales by brand, click here.