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Dec 31, 2023
Hasbro Q4 2023 Earnings Report
Hasbro's Q4 2023 results reflected a challenging year with revenue declines offset by growth in Wizards of the Coast and Digital Gaming, while the company focused on cost structure optimization and portfolio realignment.
Key Takeaways
Hasbro reported a 23% decline in Q4 revenue, with growth in Wizards of the Coast and Digital Gaming (+7%) offset by declines in Consumer Products (-25%) and Entertainment (-49%). The company reported an operating loss of $1,199 million, including goodwill and intangible asset impairment charges, and a net loss of $7.64 per share. Adjusted net earnings were $0.38 per diluted share.
Q4 revenue declined by 23%, impacted by macroeconomic conditions and strategic business shifts.
Wizards of the Coast and Digital Gaming segment grew by 7%, driven by licensed digital gaming.
Operating loss of $1,199 million included significant impairment charges.
Adjusted operating loss was $50 million.
Hasbro
Hasbro
Hasbro Revenue by Segment
Hasbro Revenue by Geographic Location
Revenue by Segment
Consumer Products Revenue
CapyFin.comEntertainment Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
For the full year 2024, Hasbro expects revenue declines in Consumer Products and Wizards of the Coast, with Consumer Products operating margin between 4% and 6% and Wizards of the Coast operating margin between 38% and 40%. Pro-Forma Entertainment segment revenue is expected to decline by $15 million, with an adjusted operating margin of approximately 60%. Total Hasbro, Inc Adjusted EBITDA is expected to be between $925M to $1B.
Positive Outlook
- Invest in core business.
- Return cash to shareholders through the dividend.
- Continue to pay down debt and progress towards leverage target.
Challenges Ahead
- Consumer Products Segment revenue down 7% to 12%.
- Wizards of the Coast Segment revenue down 3% to 5%.
- Pro-Forma Entertainment segment revenue down $15 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income