April 27, 2021
The pandemic continues to impact entertainment distributors as evidenced by Hasbro’s April 27 disclosure that it saw film and TV show revenue decline 37% to $166.4 million in the first quarter (ended March 28). The segment, which includes the acquisition of Canadian-based Entertainment One (eOne), reported revenue of $264 million in the previous-year period.
Overall movie, TV and entertainment revenue fell 34% to $194.3 million, from $292.5 million a year earlier.
Beginning with the first quarter, Hasbro realigned its financial reporting segments and business units, in order to align its segment financial reporting more closely with its current business structure — and ongoing effects of the pandemic.
The new “entertainment” segment saw revenue decline 32% to $218.7 million, from $322.5 million. Operating income turned profitable at $17 million compared with a loss of $64.3 million in the previous-year period. Much of that loss was attributed to costs associated with the $4 billion acquisition of eOne.
Hasbro said entertainment revenue declined due to expected difficult comparisons in the TV and film business from the pre-pandemic ecosystem. The theatrical business continues to be impacted by COVID-related theater shutdowns, whereas in Q1 2020 theaters were open for most of the quarter.
The company said scripted TV show distribution is expected to increase later in the current year and Hasbro is targeting returning to 2019 levels of revenue for the full-year 2021 in the TV and Film business. Adjusted operating profit in movies and TV show production declined on the lower revenue, partially offset by reduced advertising and promotional spend due to the lack of theatrical activity this year versus last.
“Our first quarter started the year well,” CFO Deborah Thomas said in a statement.