Hasbro Entertainment Unit Posts Q4 Income, Revenue Declines; Still Looking for eOne Buyer
February 16, 2023
Game and entertainment manufacturer/distributor Hasbro Feb. 16 reported entertainment revenue of $334 million in the fourth quarter (ended Dec. 25, 2022). That was down about 12% from revenue of $379 million during the previous-year period.
The business unit, which includes movie and TV show production, saw content revenue decline to $310.6 million, from $345 million, with unit operating income dropping 17% to $25.1 million, from $32.7 million in the previous-year period.
Film and TV revenue declined 10% reflecting lower film revenue with fewer new releases in 2022 vs. 2021 and the timing of deliveries. TV revenue increased behind strong scripted TV deliveries.
For the fiscal year, film and TV production/license revenue declined 17% to $828.7 million, from $997.7 million in 2021.
Hasbro said it remains committed to selling Entertainment One (eOne), the Canadian movie/TV production company it acquired in late 2019 for $4 billion under former CEO Brian Goldner, who died from prostate cancer in late 2021.
New CEO Chris Cocks wants to streamline the company’s entertainment content production and return to legacy game creation as part of his Blueprint 2.0 operating strategy.
“As we announced previously, our fourth quarter and full-year 2022 results came in below our expectations,” Cocks said in a statement. “Our strategy is centered on what makes our brands great — play, supported by compelling storytelling and disciplined brand management.”
Retiring CFO Deborah Thomas said Hasbro remains focused on investing in higher return brands and projects, ending low-return initiatives, modernizing the organization and lowering its cost base.
“We forecasted a challenging 2022, and that came to fruition,” Thomas said.