Hasbro‘s new financial reporting segments and growth drivers are ‘Consumer Products’, ‘Wizards of the Coast and Digital Gaming’, and ‘Entertainment’. Hasbro will start reporting its new segments with the first quarter earnings release in April 2021.
‘Consumer Products’ includes revenue associated with the sale of toys and games globally, while ‘Entertainment’ includes all revenue related to entertainment across Hasbro and eOne.
‘Wizards of the Coast and Digital Gaming’ includes all revenue related to digital gaming and Wizards of the Coast, including Magic: The Gathering and Dungeons & Dragons.
Consumer Products, Wizards and Digital Gaming, Entertainment
“The integrated and assembled value of Consumer Products, Wizards and Digital Gaming, and Entertainment is how we unlock the next level of return for our business and for our stakeholders,” said Brian Goldner, chairman and CEO of Hasbro.
“We have simplified our structure to maximize our growth and provide a clearer view to the drivers of Hasbro revenues, profit, margin, and cash generation.”
Revenue is predicted to grow in this segment, with the company launching Hasbro Pulse in the UK and product lines for Peppa Pig and PJ Masks debuting in 2021.
Hasbro also highlighted its partnerships with Amazon and Playskool, which focus on learning and sustainability. In addition, Hasbro is extending its partnership with Epic Games, and launching Alexa gaming integration.
As previously announced, Hasbro has teamed up with Merlin Entertainment to open the world’s first Peppa Pig Theme Park at Legoland Florida in 2022.
Wizards of the Coast and Digital Gaming
Wizards of the Coast is around halfway to achieving its target of doubling revenue from 2018 to 2023. Magic: The Gathering revenue is up by 23 percent, while Dungeons & Dragons revenue is up 33 percent.
Hasbro has invested approximately $210m in developing digital games over the past five years, and has more than 12 games in development.
The company also announced Magic Universes Beyond, a new premium card set for Magic: The Gathering, integrating Warhammer 40,000 by Games Workshop.
Hasbro brands are set to feature in several major motion pictures and TV shows by 2022 to 2023. The brand had 48.4 billion views on YouTube in 2020.
Magic: The Gathering is being made into a feature film at Fox and an animated series at Netflix, while a Dungeons & Dragons feature film is in the works with Paramount Pictures.
“Our expectation is that we return to growth in revenues, earnings and EBITDA in 2021,” added Goldner. “This includes revenue growth in all three segments to potentially achieve double-digit revenue growth across Hasbro for the year.”