Hasbro beats profit estimates on tabletop game demand, higher prices

TOYMAKER Hasbro beat market estimates for quarterly profit on Tuesday (Jul 19), riding strong demand for its Magic: The Gathering trading-card game and an increase in prices.

Despite a wider slowdown in the gaming market this year, sales at Hasbro have held up well due to a steady stream of new releases. The company unveiled an expansion set of Magic: The Gathering in the second quarter, which analysts said lifted orders for both tabletop and online versions of the game.

The Wizard's of the Coast business, home to the trading-card game and Dungeons & Dragons, posted a near 17 per cent increase in operating profit in the 3 months ended Jun 26.

The low production costs of those games, as well as higher prices for Hasbro's toys like Nerf blasters and My Little Pony figures, helped adjusted operating margins expand to 18 per cent from 16 per cent even as freight expenses surged.

Adjusted net earnings rose 10 per cent to US$160.6 million. On a per share basis, the company earned US$1.15, beating analysts' estimates of 94 cents per share, according to Refinitiv data.

Net revenue rose 1 per cent to US$1.34 billion in the quarter ended June 26, but came in below estimates of US$1.37 billion, reflecting the hit from a stronger US dollar. REUTERS