Earlier today, Hasbro held their Financial Call for the 3rd Quarter of 2019.
Unfortunately, Hasbro had a rough quarter with proposed sales tariffs to hit on the upcoming Holiday Season. Understandably, their stocks slightly declined; after enjoying a very good year before.
Nevertheless, Hasbro is happy to see revenue from Transformers: Bumblebee; which continued to pour throughout Q3.
“Program production amortization increased as we are now receiving revenue and amortizing the costs associated with Transformers: Bumblebee. Given the timing of expected revenues, we now expect fullyear program production cost amortization to be greater than historical levels but remain under 2.0% of total net revenues. Given a change in the expected timing of receipts on tax credits, we now expect full-year content spend of approximately $50-60 million.” stated Deb Thomas, Hasbro CFO.
Speaking to the press and investors, Hasbro CEO Brian Goldner stated the following:
“We see the power of storytelling in our brands. Transformers revenues were up on Bumblebee film-related revenue. Point of sale increased in the U.S. and revenues are up year-to-date, although shipments declined in the quarter with no feature film this year.”
You can check out an Inforgraphic of Hasbro’s results, after the jump.
ToaDraco
The comics are still in their own bubble when compared to everything else. I'm not hating on the comics, I love the comics but again, they're not what I was referring to with my initial post.
Fenrys
hasbro has far less direct influence? the entire idw transformers universe got rebooted to align with war for cybertron. they specifically are using the new toy designs. for characters that dont yet have toys they are specifically using recent toy designs. is allspark studios underutilized? yes, but to say hasbro has little influence over the comics is entirely false
ToaDraco
Not in the sense that I was referring to as Hasbro seems to have far less of a direct influence with the comics and frankly IDW has always sorta done their own thing. I'm talking about big projects targeting mainstream audiences specifically in the realm of movies, shows, and video games. The formation of Allspark is supposedly a big deal for consolidating these sorts of projects and certainly these things take time, it's just a bit frustrating to have such a drought of information and no idea if or when they're going to capitalize on the brand's potential especially when they had such a perfect opportunity to do so.
Fenrys
"They say they see the power of storytelling in their brands yet outside of Cyberverse they\'ve utterly falied to produce any supporting media since the Bumblebee movie."
not much support is different than hasbro failing to produce any supporting media, the two statements are mutually exclusive
Michael Payton
That stands to reason. It's not like their stock is going to make anyone rich beyond the family and the CEO. Even for those of us here who follow the markets anyway, I'll freely admit that the only interest in Hasbro is because of the media brands they make. Otherwise, I'd be checking on stocks of companies that would make me rich and not this one.
Michael Payton
Hasbro's plunge on Tuesday could be just a shakeout but let's wait for now
When the best selling Hasbro comic is Mighty Morphin Power Rangers with a circulation around 11k? That's not much support.
Gangu Stars
Very true. But you say that on here and all of a sudden folks scream about how you hate Hasbro.
Red Tracks
Hasbro could have made a lot more money on transformers, if they would keep them adequately stocked. How many times, over the past year, did they release an in demand figure that sells out quickly, and then it takes them forever to restock? Or how about limiting online pre-orders to a certain amount? Pre-orders should never be limited. Hasbro is just leaving money on the table with these practices. People are literally wanting to throw money, at Hasbro, for more quality Transformers, but Hasbro makes it extremely difficult for them, increasing the possibility that consumers will spend their money elsewhere.
Gumblor Gimbles
I like how the second it’s about Transformers half the board is suddenly capable of describing corporate earnings and fluctuations on the stock exchange.
Fenrys
Do comics not count as supporting media?
ToaDraco
It feels like it\'s been a long time since we heard anything about the next movie in the pipeline. With how well Bumblebee was recieved I would\'ve thought we\'d have some concrete info by now on what exactly the next movie will be and when it will be coming out. I\'m also still very disapointed Hasbro didn\'t take advantage of the WfC line by rebooting the WfC video games as a perfect tie-in. Hell, we still don\'t know when the Netflix show is coming and by the time it does the first part of WfC will be over. Hell, we haven\'t even seen a trailer or have a tentative release date! They say they see the power of storytelling in their brands yet outside of Cyberverse they\'ve utterly falied to produce any supporting media since the Bumblebee movie. Hopefully next year will prove more fruitful in that regard. I really, really want to see another Transformers game that\'s as awesome as WfC and FoC were and at least get some solid info on the next movie, hopefully whatever it is will learn from what worked for Bumblebee and capitolize on that– especially with what they did with the Cybertron scenes and the embracing of G1 influences as well as giving the movie heart and actual character development..
WishfulThinking
All they need to do is release a free-to-play shooter with transformation abilities for the characters. It would take the Fortnite formula to a new level. And now is the time to strike as I think Fortnite's popularity has plateaued.
SuperTitanHans
Retailers order fewer Transformers when there is no movie. That’s the bottom line and reality that we presently live in. The only thing that could change that is if the Netflix show become a massive, unforeseen success, or if somehow the TF game reaches near Fortnite levels of popularity. Both are unlikely, the latter especially so.
Michael Payton
Over the air TV isn't a good value for dollar in current market. Cartoon Network, Disney Channel and Nick all have a fraction of the audience of YouTube or Netflix.
signals3
Movies are nice, but it's ridiculous to rely on them…and they did for many many many many years and still put out great stuff.
Back when they invested a full 22 minutes into a cartoon….on TV and all.
Ah, to go back, even to UT days when they would release a lot of stuff at once and take up half an aisle.
Cliffjumper
Is this bad?
Michael Payton
This is far more than tariffs or the lack of a Transformers movie. Disney and AT&T also lost market value when they purchased Fox and Warner Brothers, respectively. $4bn is a lot of money for a company like Hasbro to spend for Entertainment One. Especially since the vast majority of its output and holdings are outside of Hasbro's normal business. Death Row Records and Grey's Anatomy are not exactly Transformers and My Little Pony. Except some nervous investors until they prove this was a good thing for the future of Hasbro.
Notomus
yeah I'd expect it to rise above todays high within the next week or so.
General Tekno
Drops after an earnings call don't necessarily mean a lot on the short scale. That tends to be when people sell to make a quick buck, going off stuff like Apple press conferences.
Capirus
Hasbro Third Quarter 2019 Earnings Conference Call | Hasbro, Inc.
Hmm. Acknowledgment that the Transformers brand has seen some growth. Nice.