Focus on priority brands
Hasbro gained share across most of its focus categories as TRANSFORMERS, PLAY-DOH, and MONOPOLY drove growth in action figures, arts & crafts, and games in the first half. In the second quarter of 2023, despite a 5% decline in overall Franchise Brands revenue, the company grew revenue for TRANSFORMERS and DUNGEONS & DRAGONS. It also saw growth in PEPPA PIG driven by digital gaming and entertainment.
Sale of eOne
As part of its efforts to focus on its priority brands, Hasbro agreed to sell its eOne film and TV business to Lionsgate for approx. $500 million. The sale includes around 6,500 titles, active productions for non-Hasbro owned IP, eOne’s Canadian film and TV operations, and the eOne unscripted business. The deal is expected to close by the end of 2023.
Hasbro Entertainment plans to focus on 30 plus Hasbro-based projects that include the TRANSFORMERS and GI JOE franchises, PLAY-DOH, D&D, MAGIC: THE GATHERING and its board game portfolio. The sale will help it move to an asset-lite model for future live-action entertainment, relying on licensing and partnerships with select co-productions.
Cost savings
Under its Operational Excellence program, Hasbro has achieved $84 million in savings in the first half of 2023. This includes $32 million of cost savings within its supply chain and $52 million within operating expenses. These savings have allowed the company to reinvest into its business to support marketing, inventory reduction and other strategic initiatives. Hasbro remains on track to deliver its savings target of $150 million for the year.