Hasbro has today reported first-quarter revenue and profit above estimates, aided by strong demand for its digital games such as “Magic: The Gathering”, after a cybersecurity incident pushed back its results.
The Play-Doh maker had forecastits preliminary first-quarter results last month after identifying unauthorised access to its network in late March. Hasbro had also released unaudited quarterly results in a regulatory filing last week.
Strength in the company’s digital gaming business has helped it counter softened demand for traditional toys due to lower consumer spending on non-essentials amid high living costs.
Quarterly revenue in its Wizards of the Coast and Digital Gaming segment rose about 26%. It had risen 46% in the year-ago quarter.
Partnerships with popular online shows and films, including the tie-up with Netflix to make toys and card games linked to the popular “K-Pop Demon Hunters” movie, also helped boost sales.
The company reported quarterly revenue of $1 billion, compared with analysts’ average estimate of $964.38m, according to data compiled by LSEG.
It had forecast preliminary sales between $970-985m on April 23.
Hasbro also reported adjusted earnings per share of $1.47, beating analysts’ estimate of $1.13, helped by the strong demand as well as cost-saving initiatives.
The company, which sources roughly half of its US merchandise from countries such as China, Vietnam, India and Japan, said it recorded $8.3m in US import tariff costs, and said that it is evaluating means to obtain refunds following the Supreme Court ruling against the duties.
Hasbro reaffirmed its annual forecast from February.
