TFW2005 Coverage Of Hasbro First Quarter 2012 Earnings Conference Call

Hasbro-First-Quarter-2012-Earnings-Conference-Call-Transformers

TFW2005 attended the Hasbro First Quarter 2012 Earnings Conference Call live today. Unfortunately, there isn’t much to tell about upcoming toys this time. To make matters worse, guess what has been cancelled this year? It’s the Annual Hasbro Fall Investor Day; the very event which let us take a look at all the secret upcoming stuff like Trailers and Toylines. However, investors will be getting some info from Hasbro since they have decided to meet the investors in person.

Find out all this and more, after the jump. As told above, there is not much to tell regarding reveals. Since this is a “Non-Movie Year” it seems as though Transformers is suffering quite a lot. The following statements about the Transformers Franchise were made during the entire hour and a half of the Hasbro First Quarter 2012 Earnings Conference Call:

“As 2012 is a non-movie year, it is not surprising that TRANSFORMERS was down in the Boys category. However, although early in the year, the brand is flat with last year on an overall brand revenue standpoint with new initiatives including TRANSFORMERS RESCUE BOTS and BOT SHOTS contributing to the Preschool and Games categories.

Additionally, licensing revenue for TRANSFOMERS grew year over year. Point of sales trends for TRANSFORMERS were up in many countries including the U.S., Canada, UK, France, Germany and Mexico. We are also seeing good early success with TRANSFORMERS PRIME as television is now airing in more than 160 countries.

In Preschool, SESAME STREET contributed to the year-over-year gains as did PLAYSKOOL HEROES, with TRANSFORMERS RESCUE BOTS leading PLAYSKOOL HEROES’ growth.

In the Games category, we continue to view 2012 as a year for stabilizing Games with the intent of growing the category in 2013 and beyond. At the end of the first quarter, our retail inventories in Games are down significantly in the U.S. from last year as we restage the business and re-invent our games initiatives beginning in the second half of 2012. Despite this trend, several Games brands grew in the quarter, including continued strong performance from MAGIC: THE GATHERING, and growth in DUEL MASTERS and BATTLESHIP. As we outlined at Toy Fair, we have developed new initiatives which focus on the “gameification” of play and these are off to a good start, including STAR WARS FIGHTER PODS and TRANSFORMERS BOT SHOTS.

Finally, our television initiatives are trending positively. THE HUB ratings are up 32% in the first quarter versus last year in total day kids 2 to 11. As we look at the overall schedule on THE HUB, Hasbro-branded television shows accounted for 6 of the top 10 series in the quarter with Transformers Rescue Bots and My Little Pony Friendship is Magic ranking number one and number two for kids 2-11.

Through a multi-year agreement with Netflix that we signed this month, we have dramatically expanded our audience by 24 million homes. Netflix will be airing ten Hasbro Studios shows, in the U.S. and Puerto Rico, including Transformers Prime and My Little Pony. These shows are part of the “Just For Kids” section of Netflix which is performing well. Our approach to television programming has been an all screen strategy from the start, and this agreement dramatically expands the visibility and distribution of our shows.

The Entertainment and Licensing segment first quarter revenues increased 19% to $29.3 million from $24.6 million last year. Revenue growth in the Entertainment and Licensing segment reflects the sale of television programming globally, as well as movie and licensing revenue from TRANSFORMERS.

From an expense standpoint, royalties were 8.1% of revenues compared to 6.4% of revenues in 2011 and reflect strong sales of entertainment properties including, BEYBLADE, MARVEL, STAR WARS and TRANSFORMERS. For the full year 2012, we continue to anticipate royalties to be in the 7 to 8% of revenues range.”

Sadly, the Hasbro Annual Fall Investor Relations Day won’t be happening this year. I’m sure you all may remember what happened last year and the year before. If not, follow the links below to arm yourself with knowledge:

On that bombshell it’s time to wrap up the coverage. Stick around… we’ll be bringing you our live coverage of BotCon 2012 this week.

Discussion / Comments (Jump to this Thread on the Boards)

  1. DethPike's Avatar DethPike says

    I saw on Yahoo that Hasbro took a loss first Q.

    Shouldn't have cancelled the FE line.

    Kidding.

  2. General Tekno's Avatar General Tekno says

    Interesting that the Transformers brand has remained flat compared to last year's revenues so far.

    A good sign indeed. If Transformers can maintain its strength as a brand in non-movie years, then it also indicates the movies aren't as necessary as they used to be to maintain sales. Will be interesting to see how the trend continues though throughout 2012 as the last movie toys disappear and Prime toys completely take over.

  3. Black Omega's Avatar Black Omega says

    While not being able to get a sneak peek at upcoming toys for Transformers is rather disappointing I would say just being able to get new toys is the more important part. Hopefully Generations will continue with a strong presence right along with TF Prime for those that collect that line. Because of FOC we know Generations will continue but hopefully there will also be G1-esque Classics releases too.

  4. wildfly's Avatar wildfly says

    Rarrrrgh! Hasbro is going bankrupt because Prime Bumblebee is two different shades of yellow, etc etc.

  5. Stygian360's Avatar Stygian360 says

    Quote:
    Originally Posted by General Tekno View Post
    Prime toys completely take over.
    This has kind of already happened if you think about it. Granted, there are still a few DOTM peg warmers hanging around, but overall Prime (at least in the stores I frequent) has supplanted DOTM merch in the Tformers section.

    And I wonder how forward thinking Hasbro was this time in not lining up any DOTM merch to carry forward thru the end of 2012. Was it really just a case of retailers not ordering product or did they not plan any new product because it's not a movie year? And furthermore, I wonder if kids would continue to buy up movie related product if it were available? This doesn't appear to be the case with the OP w/trailer toys that seem to be littering toy aisles as I type this, but perhaps if the price point were lower, say Deluxe class?

    IIRC, the figure assortments for product post ROTF continued with movie characters and or toys that weren't specifically movie but carried that theme forward- HFTD, RTS, etc- and those did pretty well. Not sure why Hasbro decided to completely cut-off DOTM merch in any form to make way for Prime. After all, a kid who loves the movies but may not be keen on the TV show will now have no other option but to buy Cliffjumper and/or Wheeljack rather than say; Acid Crumbling Ironhide, Head Pops-Off Megatron, or the sure to be a hit must buy toy of the year... one-armed movie Optimus Prime!!

  6. General Tekno's Avatar General Tekno says

    Quote:
    Originally Posted by Stygian360 View Post
    This has kind of already happened if you think about it. Granted, there are still a few DOTM peg warmers hanging around, but overall Prime (at least in the stores I frequent) has supplanted DOTM merch in the Tformers section.

    And I wonder how forward thinking Hasbro was this time in not lining up any DOTM merch to carry forward thru the end of 2012. Was it really just a case of retailers not ordering product or did they not plan any new product because it's not a movie year? And furthermore, I wonder if kids would continue to buy up movie related product if it were available? This doesn't appear to be the case with the OP w/trailer toys that seem to be littering toy aisles as I type this, but perhaps if the price point were lower, say Deluxe class?

    IIRC, the figure assortments for product post ROTF continued with movie characters and or toys that weren't specifically movie but carried that theme forward- HFTD, RTS, etc- and those did pretty well. Not sure why Hasbro decided to completely cut-off DOTM merch in any form to make way for Prime. After all, a kid who loves the movies but may not be keen on the TV show will now have no other option but to buy Cliffjumper and/or Wheeljack rather than say; Acid Crumbling Ironhide, Head Pops-Off Megatron, or the sure to be a hit must buy toy of the year... one-armed movie Optimus Prime!!
    Pretty sure it's retailer fatigue. After all, we know they originally planned to run a Movie Trilogy line in tandem with the PRiD toyline, but it got cancelled due to lack of interest.

  7. YoungPrime's Avatar YoungPrime says

    Quote:
    Originally Posted by DethPike View Post
    I saw on Yahoo that Hasbro took a loss first Q.

    Shouldn't have cancelled the FE line.

    Kidding.
    This is always common since retail doesn't buy anything new until they get rid of last year's stock.

    Still you'd think the worlds largest toy company would find away around this.

    It's not like HTS and BBTS are pushing them away. But then BBTS price's are to much at times so I'm leaning more towards HTS with 10% off or free shipping promotion during CHUG droughts such as these.

    I guarantee that if there was at least one new wave with 2 or more "Generations" TF figures shipped during 1st quarter, those numbers would've been higher.

  8. Stygian360's Avatar Stygian360 says

    Quote:
    Originally Posted by General Tekno View Post
    Pretty sure it's retailer fatigue. After all, we know they originally planned to run a Movie Trilogy line in tandem with the PRiD toyline, but it got cancelled due to lack of interest.
    If so I'm wondering why there wasn't retailer fatigue after ROTF was already a year gone, but they were still milking the line via the aforementioned line offshoots and tie-ins?

  9. bellpeppers's Avatar bellpeppers says

    Quote:
    Originally Posted by YoungPrime View Post
    I guarantee that if there was at least one new wave with 2 or more "Generations" TF figures shipped during 1st quarter, those numbers would've been higher.
    Key word being "new".
    The DOTM line- for me at least- didn't offer anything new or innovative enough.

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