Hasbro Ups Q2 Entertainment Revenue Thanks to Netflix Cartoon Series Licensing

Hasbro July 26 reported TV, film and entertainment revenue of $196.2 million for the second quarter, ended June 30. That was up 48% from revenue of $132.2 million in the previous-year period.

The game manufacturer attributed the gain to content deals for several properties, including “My Little Pony,” “Peppa Pig” and “PJ Masks” for Netflix Kids, as well as growth in YouTube advertising revenue. Television revenue grew with deliveries, including teen drama “Cruel Summer” for Disney’s Freeform and “The Rookie” for ABC TV, among other scripted and unscripted programs.

Overall entertainment revenue, which includes movie, TV content distributor eOne, increased 47% to $226.7 million from $154.1 million, with adjusted operating income of $9.9 million, compared with adjusted operating income of $9.1 million last year.

“Strength across Hasbro’s brands and business backed by strong execution from the entire team drove superb results for our second quarter,” chief financial officer Deborah Thomas said in a statement.

Indeed, total revenue, which includes board games and consumer products, increased 54% to more than $1.32 billion from $860.3 million last year. Net loss narrowed to $22.9 million, attributed in part to a charge of $101.8 million related to the loss on eOne Music assets held for sale and $7.3 million in related transaction costs.

Shout! Factory Slates 35th Anniversary Steelbook for ‘The Transformers: The Movie’

The Transformers: The Movie will be issued in a limited-edition 4K Ultra HD Blu-ray Steelbook from Shout! Factory, in collaboration with eOne, a Hasbro company, on Aug. 3, in time for the film’s 35th anniversary.

The packaging features new key art by celebrated comic artist Matt Ferguson. The release also includes an all-new 4K transfer of the movie in widescreen with HDR, Dolby Vision and Dolby Atmos, the film in HD full frame on Blu-ray, immersive bonus content including never-before-seen feature-length storyboards, plus four exclusive art cards.

The 4K edition will include new bonus materials such as feature-length storyboards, including deleted, alternate and extended sequences; and the Fathom Events 30th anniversary featurette, including Stan Bush’s acoustic performances of “The Touch” and “Dare.” The combo pack will also include previously released extras including the “‘Til All Are One” retrospective documentary, audio commentary, legacy featurettes, animated storyboards, and trailers and TV spots.

Fans who pre-order from shoutfactory.com will also receive a limited-edition 18×24-inch lithograph with new art by Ferguson, while supplies last.

On Sept. 28, Shout! Factory will issue two additional 35th anniversary editions of The Transformers: The Movie: a standard 4K UHD + Blu-ray combo pack and a Blu-ray + DVD combo pack.

The standard 4K edition includes the all-new 4K transfer of the movie in widescreen along with the HD full frame version and new bonus material. The full-length storyboards and Fathom featurette are exclusive to the 4K editions.

The Blu-ray + DVD combo pack is a reissue of the 30th anniversary combo pack, featuring the movie in HD full frame on Blu-ray as well as a widescreen edition on DVD, and new box art.

These configurations will be available for pre-order later this summer from Shout! Factory.

Under license from Shout! Factory, The Transformers: The Movie Steelbook and standard 4K Ultra HD Blu-rays will also be released in the United Kingdom this September.

Pandemic Drops Hasbro Q1 Movie & TV Revenue 37%

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.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Hasbro CFO Deborah Thomas

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.

Hasbro’s eOne Posts Q4 Profit, Ups Revenue Despite Pandemic

Hasbro’s Entertainment One (eOne) subsidiary Feb. 8 reported fourth-quarter (ended Dec. 27, 2020) operating income of $46 million, compared with an operating loss of $34.8 million during the previous-year period, (ended Dec. 29, 2019) based on an adjusted pro-forma basis. Revenue increased 10% to $259.6 million, from $235.2 million. Hasbro acquired eOne for $4 billion in Q1 2020.

Revenue increased in the quarter as live-action TV and film production resumed. 2020 operating profit included $34.7 million of acquisition and related charges, and $25.5 million of purchased intangible amortization associated with the fair value of acquired intangible assets.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Hasbro’s film and TV production revenue declined 15% to $110 million, from $130.2 million in the previous-year period on lower consumer products revenue as well as lower entertainment revenue, partially offset by growth in digital gaming. The previous 2019 quarter included Bumblebee movie revenue in partnership with Paramount Pictures. Operating profit decreased due to lower revenue, partially offset by growth in licensed digital gaming and cost management.

“Throughout 2020, the global Hasbro team did an excellent job executing in a challenging environment,” CFO Deborah Thomas said in a statement. “In the fourth quarter, we grew revenues and adjusted operating profit, overcoming tough comparisons within the partner brand category and last year’s theatrical releases.”

Sky and eOne Ink Movie Distribution Deal

Comcast-owned satellite TV operator Sky and Hasbro-owned Entertainment One (eOne) on Nov. 25 announced a long-term partnership that will afford Sky subscribers access to hundreds of hours of movie content. The deal covers both eOne’s existing 200-film library and new releases in development.

Starting next summer, Sky will have the pay-TV rights to eOne’s first-run feature films, including the animated kids’ title Two by Two: Overboard!, which debuted in October at the top of the U.K./Ireland box office.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

eOne’s library includes the “Twilight” and “Divergent” franchises, Young VictoriaDallas Buyers Club and Looper. A  number of new releases will also be available to Sky Cinema subs, including holiday rom-com Happiest Season, starring Kristen Stewart, Mackenzie Davis, Alison Brie, Aubrey Plaza, Dan Levy, Victor Garber and Mary Steenburgen, which bypassed a U.K. theatrical release due to the pandemic. Existing movie library titles are available now to Sky Cinema and Now TV Cinema Pass customers in the U.K. and Ireland.

“This year alone we’ve struck agreements with Disney, Discovery, Sony and DreamWorks Animation to increase the variety of content available on Sky Q,” Stephen van Rooyen, CEO of U.K. & Europe Sky, said in a statement.

Sky subs currently have access to content from Netflix, Disney+ (U.K. and Ireland), WarnerMedia (HBO), Showtime, Discovery, Fox and Sony, among others.

eOne is one of the top independent film distributors in the U.K., generating more than £1.13 billion ($1.51 billion) at the U.K. and Irish box office in the past 12 years. Top titles include Stan & OllieThe Girl on the TrainThe BFG12 Years a SlaveThe Twilight Saga, and more recently Sam Mendes’ World War I epic 1917.

“A partnership of this scale marks one of the biggest strategic deals we’ve done this year,” said Stuart Baxter, president of international distribution at eOne. “We’re confident they will be a brilliant marketing partner for our content, working with us through the entire lifecycle.”

 

Pandemic Undermines eOne, Hasbro Q3 Fiscal Results

With much of Hollywood and movie theaters shuttered over the summer, film and TV studio Entertainment One (eOne) and parent Hasbro Oct. 26 reported depressed revenue and operating income for the third quarter (ended Sept. 27).

eOne, which Hasbro acquired for $4 billion in August 2019, saw an operating loss of $25.9 million, compared with operating income of $15.8 million during the previous-year period. Revenue dropped 32% to $193.4 million, from $283.3 million a year earlier. For the nine months of the fiscal year, the operating loss was $64.9 million, compared with $91.3 in operating income in 2019.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

For Hasbro, whose entertainment brands include Transformers, G.I. Joe and Power Rangers, among others, saw entertainment, licensing and digital segment revenue decline, which included the Bumblebee film revenue (with Paramount Pictures), partially offset by growth in digital gaming.

Operating profit increased due to a favorable mix of growth in licensed digital gaming, lower advertising costs, and lower development expenses due to the closure of Backflip Studios in late 2019.

“Live-action entertainment production is returning, and we are set to improve deliveries in the fourth quarter with some moving into 2021,” Brian Goldner, CEO of Hasbro, said in a statement. “Demand for stories and content as well as viewership remain high. The teams have a robust development slate of over 150 active television and film projects, including more than 30 Hasbro properties.”

eOne Acquisition, COVID-19 Weigh Heavily on Hasbro Earnings

Game manufacturer Hasbro’s aggressive move into content production and distribution continues to sting the fiscal bottom line. The company July 27 reported a second-quarter (ended June 30) loss of $33.9 million on revenue of $863 million, which was down 29% from revenue of $1.2 billion in the previous-year period.

Much of the loss came from the $3.8 billion acquisition of Entertainment One in 2019, including $8.5 million after tax of acquisition-related expenses, $10.1 million after-tax of severance charges associated with cost-savings initiatives within the Canadian company’s commercial and TV and film businesses, and $17.9 million after-tax of purchased intangible amortization associated with the deal. eOne revenue in the quarter fell 30% to $160.9 million from $231.1 million.

Follow us on Instagram

Hasbro, which has licensed IP to Paramount Pictures for movie franchises “Transformers” and “G.I. Joe,” among others, said revenue from “TV, film and entertainment” dropped 32% to $132.2 million from $195.4 million — much of it due to production and distribution shutdowns caused by the coronavirus pandemic.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“The second quarter was much as we expected: strong point of sale for Hasbro brands countered by a very challenging revenue period due to global closures in our supply chain, across retailers as well as in entertainment production,” CEO Brian Goldner said in a statement.

With the economy slowly emerging from the shutdowns, Goldner is looking forward to the winter holiday retail season. Hasbro’s biggest retail clients include Walmart, Target and Amazon.

“We believe the outlook improves from here,” Goldner said. “Consumers — children, families, fans and audiences — are relying on Hasbro brands and stories to connect and entertain themselves throughout this period.”

CFO Deborah Thomas said the gamer has a strong financial position, with more than $1 billion in cash on the balance sheet and a $1.5 billion revolving credit facility.

“We continue to see improvement as stores reopen, and we are working closely with our customers to successfully navigate this period,” Thomas said. “Working capital needs increase in the second half of the year, with early fourth quarter the peak period and we are positioned to support our plans for a good holiday season.”

Entertainment One Inks Deal With Former Marvel Exec Jeremy Latcham

Entertainment One has entered into a first-look agreement with producer and former Marvel Studios executive Jeremy Latcham.

Hasbro recently acquired eOne.

The first project announced under the deal is a film for “Dungeons & Dragons,” which is managed by Wizards of the Coast, a Hasbro subsidiary that also manages “Magic: The Gathering.” Jonathan Goldstein and John Francis Daley are attached to write and direct the film, which is co-produced by eOne, Hasbro’s global entertainment studio, and Paramount. This film marks the first project for eOne with Paramount since eOne’s acquisition by Hasbro.

“Jeremy is a massively talented producer with a track record of creating true-to-brand films with size and scope that resonate with audiences and excel on a global scale,” Nick Meyer, eOne president of film, said in a statement. “In our exciting new era with Hasbro, we’re thrilled to begin this new partnership and look forward to sharing the amazing projects that are to come.”

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“Nick and the entire eOne team have welcomed me into the fold with open arms,” Latcham said in a statement. “Hasbro’s incredibly rich library of beloved brands in addition to the opportunity to develop original material makes for a very exciting next step for me as a creative producer. My passion for telling stories steeped in heart, humor and spectacle aligns with D&D’s decades of immersive, adventure-driven storytelling, and I am beyond excited to help John and Jonathan, eOne, Paramount, and Wizards of the Coast bring this rich world to filmgoing audiences.”

Follow us on Instagram

Latcham most recently produced 2018’s Bad Times at the El Royale. Previously, Latcham spent 13 years at Marvel Studios, where he executive produced Spider-Man: Homecoming, Avengers: Age of Ultron, Guardians of the Galaxy and The Avengers. Latcham was the associate producer on Iron Man and co-producer on Iron Man 2.

Hasbro’s additional film properties include the “Transformers” and “G.I. Joe” film franchises.

Hasbro Takes Q1 Fiscal Hit From eOne Acquisition — Not COVID-19

Hasbro April 29 reported a first-quarter (ended March 31) net loss of $69.6 million, compared with a net income of $76.4 million in the previous-year period. The toymaker, game manufacturer and movie producer attributed the loss to acquisition and costs associated with the $4 billion acquisition of content producer/distributor Entertainment One (eOne) in 2019.

Contributing to the loss was $127.5 million after-tax of acquisition-related expenses and $19.9 million after-tax of purchased intangible amortization associated with the acquisition. Excluding these items, adjusted net income would have been $77.7 million. Total revenue for the quarter was $1.11 billion compared to $1.2 billion pro forma revenues in 2019. Foreign exchange had an $11.7 million negative impact on first quarter 2020 revenue.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Entertainment revenue declined in the quarter due to planned later delivery timing for eOne content. Beginning late in Q1, production and delivery of television and film projects for Hasbro’s eOne TV and movie business shut down, negatively impacting revenue.

The eOne team continues to develop new projects and work on animation production which can be done remotely,” CEO Brian Goldner said in a statement. “The team now expects to deliver finished episodes and film projects later in the year than planned.”

Indeed, several film release dates have moved to later in 2020, into 2021 and in some instances are going straight to video-on-demand/EST and packaged media, windows impacting the timing and level of anticipated revenue.

“As more people are home, content viewership is high which bodes well for long-term brand engagement,” Goldner said.

Follow us on Instagram

The executive said Hasbro has been proactive during the coronavirus pushing its portfolio of “face-to-face” games to families spending more time at home.

“Point of sale at retail was strong during the first quarter and continues to be up in April,” Goldner said. “We’ve undertaken extensive scenario planning across the business and geographies as we plan for a re-opening of the economies globally.”

CFO Deborah Thomas said closure of the eOne acquisition included drawing down on a $1 billion term loan. The cash position increased to $1.2 billion at the end of the quarter, and is further supported by access to a $1.5 billion revolving credit facility, according to Thomas.

“Toward the end of the quarter, physical store closures and country-wide restrictions became more prevalent and entertainment productions shut down,” Thomas said.

The CFO expects the second quarter to be more challenging with revenue and earnings down versus pro forma 2019. “We are taking prudent steps to lower expenses and preserve capital while positioning to meet the seasonal peak demand periods of the business in the second half of the year, including the holiday season.”

With third-party factories in China representing about 55% of Hasbro’s manufacturing production — and operating at reduced capacity. Thomas expects Chinese factories that are making product across the business, including games, would typically build to peak levels during the summer months—- making up production lost in the first quarter into the second quarter.

“These beliefs assume all production continues to operate in all material respects without further COVID-19 shutdowns,” Thomas said. “While the ultimate impact will vary depending on how long it takes to reopen markets around the world, we are currently seeing healthy demand for our products and content.”

Hasbro said manufacturing and warehouse partners outside of China operated at close to normal levels during much of the first quarter. Beginning in mid-March and through today, these locations are operating at varying levels of productivity depending on local government and safety considerations, with some markets operating at lower than normal production levels and other facilities have been closed for a period of time.

Currently closed facilities include manufacturing in Massachusetts, Texas and Ireland, primarily for games, as well as manufacturing locations in India.

Hasbro Completes eOne Purchase, Ups Licensing Revenue

Hasbro Feb. 11 disclosed it has completed its $3.8 billion acquisition of Entertainment One Ltd. (eOne). The game manufacturer’s financial results for the fourth quarter and full-year 2019 (ended Dec. 31) do not include the results of eOne, but were impacted by acquisition financing, foreign-exchange hedges and other activities associated with the deal.

The agreement aims to accelerate Hasbro’s brand portfolio with eOne’s global preschool brands, TV and film catalog (i.e. “Transformers,” “G.I. Joe,” etc.).

“The acquisition … significantly expands our expertise and capabilities as a global play and entertainment company,” CEO Brian Goldner said in a statement. “Our teams are actively engaged to unlock value across our organization — in gaming, in toys, in consumer products and in entertainment.”

Follow us on Instagram

Costs associated with the transaction included $17.8 million of eOne acquisition-related costs for the fourth quarter and full-year 2019.

Full-year 2019 entertainment, licensing and digital segment net revenue increased 22% to $434.5 million, compared with $356.3 million in 2018.

Revenue included Hasbro’s share of from the Bumblebee movie, including home entertainment, consumer products revenue and higher digital gaming licensing revenue. This was partly offset by lower digital streaming revenue versus 2018’s multiyear digital streaming deal for Hasbro television programming.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Hasbro legacy gaming revenue decreased 10% to $709.8 million. Revenue gains from “Dungeons & Dragons” and several classic games titles were more than offset by declines in other games, including Pie Face and Speak Out. Hasbro gaming revenue decreased in all three operating segments.