Toymaker Hasbro trounced analysts' estimates for quarterly revenue and profit on Monday, bolstered by a recovery in its television production business and price increases to counter a hit from supply chain issues.
Revenue from the Monopoly board game maker’s entertainment business jumped 54 per cent in the fourth quarter to December 26th, as the company delivered new episodes of the Showtime series Yellowjackets and released a new Clifford the Big Red Dog movie.
In contrast, year-earlier results were knocked by production shutdowns brought on by the pandemic.
The return of Marvel superhero movies last year also propped up the company’s consumer products unit, with revenue up 9 per cent on demand for toys based on characters from the films.
Hasbro, like rival Mattel, has been looking to generate more revenue from TV shows, movies and video games as it focuses on becoming a broader entertainment company rather than just a toymaker.
The company’s total net revenue rose 17 per cent to $2.01 billion in the fourth quarter, beating analysts’ estimates of $1.87 billion, according to Refinitiv Ibes estimates.
On an adjusted basis, the company earned $1.21 per share, topping estimates of 88 US cents, as price increases last year helped offset a surge in raw material and transportation costs.
Hasbro, which last month named the head of its digital gaming division, Chris Cocks, as its next chief executive, said it expects fiscal 2022 revenue to rise at a low single-digit rate. Analysts on average had estimated a 3.9 per cent increase. – Reuters
