Hasbro held their Third Quarter 2017 Earnings Conference Call this morning to investors, journalists and other interested parties.
Speaking to the audience, Hasbro CEO Brian Goldner stated “Transformers multi-screen entertainment continued to drive revenue growth in the franchise. Point of sale is up versus last year and up versus the last movie year. This fall we continue with new entertainment initiatives to engage our fans. The global home entertainment release of Transformers: The Last Knight took 6th place on September 28th and all-new episodes of Robots In Disguise and Rescue Bots are running on linear and streamed services. In addition, in partnership with Machinima, in November we are debuting the second chapter of the critically acclaimed Digital Animated series Prime Wars Trilogy…Titans Return.
Royalty expense decreased 20 basis points to 7.8% of revenue, on the small decline in Partner Brand revenues partially offset by the continued 14 growth from Transformers: The Last Knight movie product, which carries some external royalties.”
Mr. Goldner did not forget to add a comment regarding TRU bankruptcy filing:
“Our commercial and finance teams are effectively managing the short-term disruption from the Toys“R”Us restructuring and bankruptcy filing in the U.S. and Canada, as well as ongoing softness in the UK and Brazil.”
Hasbro CFO Deb Thomas also stated “As Brian mentioned, the Toys“R”Us bankruptcy filing in the U.S. and Canada negatively impacted our third quarter revenue and operating profit, including incremental bad debt expense associated with the bankruptcy. Excluding the incremental expense, total company operating profit would have been approximately 100 basis points higher in the quarter. While this event has also negatively impacted our initial growth outlook for the fourth quarter, we continue to work closely with Toys“R”Us to be able to deliver the right products to consumers for a successful holiday season”
You can check out an Infographic summarizing the Third Quarter 2017 Earnings Conference Call, after the jump.
“We have positioned Hasbro to unlock the full potential of our brands, investing significantly across the Brand Blueprint. We are still in the early stages of realizing our ambition. During this quarter we demonstrated our strategy’s ability to deliver growth amid challenging conditions, across a number of dimensions. Revenues grew in each operating segment with double-digit consumer takeaway globally at retail. Franchise Brands, Hasbro Gaming and Emerging Brands revenues increased led by growth in Nerf, Transformers, My Little Pony, Monopoly, Baby Alive, Furreal Friends, Speak Out and Twister. And our investments in our multi-screen content to commerce and omni-channel retail strategies are building deeper consumer engagement across multiple brand experiences as evidenced by the growth in Transformers and My Little Pony.
For the third quarter, Hasbro’s Franchise Brand revenues increased 7%, with growth in NERF, TRANSFORMERS, MY LITTLE PONY and MONOPOLY. Hasbro Gaming increased 22% and Emerging Brands were up 9%.”\