Revenue growth
The releases of MAGIC: THE GATHERING Strixhaven and Modern Horizons 2 as well as the launch of Magic: The Gathering Arena on mobile contributed to this impressive growth. Gains in NERF, TRANSFORMERS, MY LITTLE PONY, PJ MASKS, PEPPA PIG and GI JOE helped drive revenue increases of 72% in Franchise Brands and 54% in Emerging Brands during the quarter.
Pickup in TV/film/entertainment
Hasbro’s entertainment segment witnessed a revenue growth of 47% in Q2 compared to the same quarter a year ago as theatrical releases and content production make a comeback. The company saw a growth in television revenue helped by scripted and unscripted programs. Shows such as Cruel Summer and The Rookie remain popular and the company has movies such as Stillwater slated for release. In unscripted TV, there are nearly 40 active productions for Canada, the US and the UK.
The popularity of certain movie franchises and TV shows have fueled demand for several of Hasbro’s products. Revenue in Hasbro’s Partner Brands grew 53% helped by higher demand for products inspired by the Marvel and Star Wars franchises as well as the popular Disney+ show The Mandalorian.
Higher prices and holiday demand
Hasbro is seeing significantly higher freight and input costs this year versus the last. To tackle these rising costs, the company will roll out price increases during the third quarter, which should be realized by the fourth quarter.
The company is also working on ensuring product availability to make the holiday season a success. These efforts include sourcing more products earlier out of multiple countries, increasing the number of ocean carriers and utilizing more ports to speed up product delivery.