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Jun 28, 2020
Hasbro Q2 2020 Earnings Report
Hasbro's Q2 2020 earnings were impacted by COVID-19, leading to a revenue decline, while digital-first orientation and gaming revenues showed positive trends.
Key Takeaways
Hasbro reported a 29% decrease in revenue to $860.3 million due to COVID-19 related disruptions, but experienced strong consumer demand and high-single digit global point of sale growth. Hasbro Gaming revenues increased by 11%, and the company is focusing on a digital-first approach. The company maintains substantial liquidity with $1.0 billion in cash and $1.5 billion available under a revolving credit facility.
Q2 2020 revenues decreased by 29% to $860.3 million due to COVID-19 impacts.
Hasbro Gaming revenues increased by 11%.
Digital-first orientation drove significant revenue and point of sale ecomm growth.
The company ended the quarter with $1.0 billion in cash and access to a $1.5 billion revolving credit facility.
Hasbro
Hasbro
Hasbro Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Hasbro expects the environment to improve in Q3 and is positioned for a good holiday season. They are also positioned to benefit from investments in ecomm, entertainment and digital gaming. The company expects to deliver against its plan of $130 million in synergies by year-end 2022.
Positive Outlook
- Consumers are relying on Hasbro brands and stories to connect and entertain themselves.
- The outlook is expected to improve from Q3.
- The company is set to execute a good holiday season.
- A strong entertainment lineup is expected for 2021.
- The company is on track to deliver against its plan of $130 million in synergies by year-end 2022.
Challenges Ahead
- The full-year COVID-19 impact geographically remains unpredictable.
- Global closures in the supply chain, across retailers, and in entertainment production impacted revenue.
- Some customers remained closed throughout the second quarter and cash collections have been extended.
- Latin America revenues and point of sale declined and are expected to remain challenged in the second half of the year.
- Live action production in the TV and Film space was shutdown throughout the second quarter, delaying the completion and delivery of productions and timing of revenues.
Revenue & Expenses
Visualization of income flow from segment revenue to net income