Hasbro announced on Thursday that it had raised its financial targets for 2025 after posting better-than-expected Q3 results, mainly due to the record performance of its card game Magic: The Gathering.
The American toy and board game manufacturer's revenue increased by 8% to nearly $1.39bn in the past quarter, driven by a 55% jump in sales of Magic, which benefited from the release of the "At the Gates of Eternity" and "Spider-Man" editions.
Despite the impact of customs surcharges, operating income rose 13% to $341m, thanks to cost-cutting and productivity improvement measures taken by management, resulting in adjusted earnings per share (EPS) of $1.68.
By comparison, the market consensus was for EPS of $1.66 on quarterly sales of $1.35bn.
Following these better-than-expected results, the Pawtucket, Rhode Island-based group now says it is targeting revenue growth of 5% to 10% at constant exchange rates this year, compared with a previous forecast of "around 5%."
Its adjusted operating income (EBITDA) is expected to be between $1.24bn and $1.26bn, compared with $1.17bn to $1.20bn previously.
Hasbro, Inc. specializes in the design, production and marketing of games and toys. Additionally, the group is active in the production of films and TV programs. Net sales break down by activity as follows:
- sales of toys and games (93.8%): action figurines and toys, dolls and stuffed toys, traditional toys, electronic toys and games, creative and educational toys and games, card games, etc. sold under franchise brands (Littlest Pet Shop, Magic : The Gathering, Monopoly, My Little Pony, Nerf, Play-Doh and Transformers), under partner brands (Spider-Man, The Avengers, Star Wars, Disney Princess, Disney Frozen, Disney's Descendants, Beyblade, Dreamworks' Trolls, Sesame Street and Yo-Kai Watch), under company-owned brands (Baby Alive, Furreal Friends, Kre-o, Playskool and Playskool Heroes) and other (board games and digital games sold under Dungeons & Dragons, Jenga, The Game Of Life, Operation, Pie Face, Scrabble, Trivial Pursuit, Twister, Fantastic Gymnastics, Speak Out and Toilet Trouble;
- production and sales of film, TV and digital games licenses (2.8%) ;
- other (3.4%).
The United States account for 62.9% of net sales.
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