Hasbro reported an overall increase in net revenues in the third quarter of 2021, boosted by growth in the categories of entertainment as well as Wizards of the Coast and digital gaming. At the same time, the company saw a slight decline in consumer products revenue amid supply chain issues.
Hasbro’s net revenue in Q3 2021 totaled $1.97 billion, up 11% from Q3 2020. Revenue in the entertainment segment saw a significant increase of 76%. The Wizards of the Coast and digital gaming segment net revenues grew 32%.
“The Hasbro team performed at an extremely high level to deliver double-digit revenue growth, strong earnings and cash flow for the quarter, driven by our diversified business model,” said Rich Stoddart, interim chief executive officer. “While we mourn the passing of our long-time leader and friend Brian Goldner, our performance is a testament to the power and potential of the Brand Blueprint strategy he architected.”
At the same time, revenues in the consumer products segment fell 3%. While Hasbro Gaming and emerging brands revenue increased (as did revenue in licensing and Latin America), Hasbro noted that global consumer point of sale declined mid-single digits as in-stock levels were below targets. The company reported that supply chain disruption resulted in approximately $100 million in orders that were not filled in the third quarter — the majority of which have since been filled early in the fourth quarter.
In the entertainment segment, revenue grew from films Come from Away and Finch as well as deliveries of TV series Yellowjackets and The Rookie and sales of Fear the Walking Dead, among other scripted and unscripted titles. The delivery of My Little Pony: A New Generation on Netflix, content deals for Peppa Pig and PJ Masks, and growth in YouTube advertising revenues helped to bolster Hasbro’s family brands revenue.
Meanwhile, tabletop and digital gaming revenues for licensed digital gaming, Dungeons & Dragons, and Magic: The Gathering — which released extensions such as Adventures in the Forgotten Realms and Innistrad: Midnight Hunt — led the Wizards of the Coast and digital gaming segment in Q3.
“The strength of the business is evident in the quarter’s results, highlighting the benefits of our Brand Blueprint strategy to deliver strong revenue, earnings and cash flow,” said Deborah Thomas, Hasbro’s chief financial officer. “Our established and experienced leadership team continues to execute on the vision we all share. We are also working tirelessly to ensure product for the holiday, and are pleased that, through today, we have delivered much of what was delayed in the third quarter despite continued supply chain challenges.”
Thomas added that for the full-year, the company continues to target double-digit revenue growth, currently expected in the range of 13% to 16%. Hasbro anticipates that operating margins will be in line with last year’s adjusted level of approximately 15%.
“We have orders to support the high end of the revenue growth range, but there are supply chain factors out of our control which could impact our ability to fully achieve the upside,” Thomas said.
See the full financial report here.