Hasbro has raised its full-year forecasts after booming sales of Magic: The Gathering and continued demand for digital games boosted its second-quarter performance.
The company, which owns the likes of Monopoly and Play-Doh, now expects annual revenue to rise between 5 per cent and 7 per cent on a constant-currency basis, up from its previous forecast of between three per cent and five per cent.
Hasbro also increased its adjusted EBITDA forecast to between $1.45bn and $1.5bn, compared with its previous guidance of $1.4bn to $1.45bn.
Chief financial officer and chief operating officer Gina Goetter said the group’s broad-based performance had given it the confidence to increase its expectations, although uncertainty remained around the crucial Christmas trading period.
Revenue climbed 16 per cent to $1.14bn during the second quarter, ahead of analysts’ expectations of $1.07bn.
Adjusted earnings dipped two per cent to $1.28 per share but still surpassed analyst forecasts of $1.14 per share. Hasbro shares jumped around 11 per cent following the results.
The performance was driven by Hasbro’s Wizards of the Coast and Digital Gaming division, where revenue surged 27 per cent.
Magic: The Gathering sales rose 32 per cent to $545.3m, marking the first time the trading card franchise has generated more than $500m in revenue during a single quarter.
Growth was fuelled by the release of its Secrets of Strixhaven and Marvel Super Heroes collections, with the latter becoming the fastest Magic set to generate $300m in sales.
Chief executive Chris Cocks said: “Magic: The Gathering eclipsed $500m in quarterly revenue for the first time in its 30-plus-year history, led by the record-breaking debut of Marvel Super Heroes.”
Hasbro is preparing to launch further Magic collections during the second half, including a Star Trek-themed set in November.
Digital and licensed gaming sales increased 17 per cent, while Monopoly Go! contributed $44m of revenue during the quarter.
Hasbro’s Consumer Products division, which includes its traditional toys and games, recorded a 5 per cent increase in sales, supported by merchandise linked to entertainment releases and growth across selected product categories.
However, the division posted an adjusted operating loss of $8m as increased tariff costs, product mix and seasonal pressures weighed on profitability.
The company said stronger spending from higher-income shoppers helped offset softer demand among lower-income households, which continued to face pressure from inflation.
Hasbro’s results were also affected by a cyberattack discovered in March, which disrupted order processing, shipping and invoicing.
The incident generated $11m in additional costs during the quarter and is estimated to have reduced revenue by around $25m. Hasbro said its operations had since returned to pre-incident practices but warned that further costs were expected.
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