Hasbro, Inc. reported an increase in revenue in its financial results for the fourth quarter and full year 2019.
In Q4, net revenues increased 3% to $1.43 billion, compared to $1.39 billion in the fourth quarter 2018. Fourth quarter 2019 net revenues included an unfavorable $13.0 million impact from foreign exchange. Revenue was bolstered by strong demand for Hasbro’s products for Disney Frozen 2 and Star Wars, according to the company.
For the full-year 2019, net revenues increased 3% to $4.72 billion versus $4.58 billion in 2018 (net revenues increased 5% excluding an unfavorable $78.5 million impact of foreign exchange).
In 2019, Franchise Brands revenue decreased 1% to $2.41 billion. Magic: The Gathering, Monopoly, and Play-Doh revenues increased for the year while Nerf, My Little Pony, Baby Alive, and Transformers declined.
Partner Brands revenue increased 24% to $1.22 billion. Revenues for Hasbro’s line of Disney’s Frozen 2 product along with increases in Hasbro’s products for Marvel’s Avengers and Spider-Man franchises drove much of the growth. Star Wars revenue growth was strong in the fourth quarter and drove full-year growth for the brand.
Results for fourth quarter and full-year 2019 do not include the results of the eOne acquisition completed in Q1 of 2020, but were impacted by eOne acquisition financing, foreign exchange hedges, and other activities.
Hasbro Gaming revenue decreased 10% to $709.8 million. Revenue gains from Dungeons & Dragons and several classic games titles were more than offset by declines in other games, including Pie Face and Speak Out.
Emerging Brands revenue increased 5% to $377.6 million driven by shipments of Power Rangers and Playskool, including Mr. Potato Head, offset by declines in Littlest Pet Shop and Quick Strike collectible offerings.
“The global Hasbro team delivered a good year and achieved key objectives we set for 2019. We profitably grew revenues across regions absent foreign exchange supported by the successful execution of our channel strategy; we delivered growth in Magic: The Gathering driven by the successful launch of Arena and we executed at a high level during the holiday season,” said Brian Goldner, Hasbro’s chairman and chief executive officer. “Our acquisition of Entertainment One accelerates our Brand Blueprint strategy and significantly expands our expertise and capabilities as a global play and entertainment company. Our teams are actively engaged to unlock value across our organization – in gaming, in toys, in consumer products and in entertainment.”
“Our teams worked extremely hard and executed at a high level this holiday, driving fourth quarter and full-year revenue and profit growth while also diversifying our supply chain and preparing to close a major acquisition,” said Deborah Thomas, Hasbro’s chief financial officer. “We are strongly positioned to continue investing in long-term drivers of the business, including brand innovation, gaming and entertainment, as we also focus on returning to our stated gross Debt to EBITDA target of 2.0 to 2.5X over the next 3 to 4 years.”