Hasbro(US:HAS)2025-10-23 10:45Revenue Growth - Hasbro's revenue increased by 8% year-over-year, driven by double-digit growth in Wizards and Digital Gaming, partially offset by expected softness in Consumer Products[5] - Year-to-date revenue increased by 7%, with Wizards and Digital Gaming growing by 33%, offsetting a 9% decline in Consumer Products[8] - Net revenues for the three months ended September 28, 2025, increased to $1,387.5 million, up 8.3% from $1,281.3 million in the same period last year[24] - Total external net revenues for the three months ended September 28, 2025, were $1,387.5 million, an increase of 8% compared to $1,281.3 million for the same period in 2024[26] - For the nine months ended September 28, 2025, total external net revenues were $3,255.4 million, a 7% increase from $3,033.9 million in the same period of 2024[28] Segment Performance - MAGIC: THE GATHERING revenue grew by 55%, supported by Q3 releases and continued strength in backlist titles[5] - Operating profit for the Wizards of the Coast and Digital Gaming segment increased by 31% to $723 million, with an operating margin of 46.5%[8] - The Wizards of the Coast and Digital segment reported external net revenues of $572.0 million, a significant increase of 42% from $404.0 million in the prior year[26] - The Wizards of the Coast and Digital Gaming segment's external net revenues for the nine months increased by 33% to $1,556.5 million, up from $1,172.3 million in the previous year[28] - The Consumer Products segment saw a revenue decrease of 7% due to U.S. retailer order timing, while operating profit was down 32% primarily due to tariff expenses[8] - Consumer Products segment external net revenues decreased by 7% to $796.9 million, down from $860.1 million in the same quarter of 2024[26] - Operating profit for the Consumer Products segment fell by 32% to $80.1 million, compared to $121.0 million in the same quarter of the previous year[26] - The Consumer Products segment reported an operating loss of $993.4 million for the nine months ended September 28, 2025, compared to a profit of $64.8 million in the same period of 2024[31] Profitability - Operating profit for Q3 was $341 million, reflecting a 13% increase compared to last year, with an adjusted operating profit of $356 million, up 8%[5] - The company reported an operating loss of $286.4 million for the nine months, but after non-GAAP adjustments, the adjusted operating profit was $825.2 million, reflecting a 14% increase from the previous year's adjusted profit of 726.1 million[28] - Adjusted EBITDA for Q3 2025 was $412.9 million, up from $406.4 million in Q3 2024, indicating a growth of 1.2%[30] - Operating profit for Q3 2025 reached $341.1 million, compared to $301.9 million in Q3 2024, representing an increase of 12.9%[31] - The Wizards of the Coast and Digital Gaming segment generated an operating profit of $251.5 million in Q3 2025, up from $181.2 million in Q3 2024, a significant increase of 38.8%[31] Shareholder Returns - The company returned $98 million to shareholders through dividends in Q3 and $294 million year-to-date[11][8] - The company declared cash dividends of $0.70 per common share for the three months ended September 28, 2025, consistent with the previous year[24] Financial Position - The company reported a net loss of $3.74 per share year-to-date, with adjusted net earnings of $4.03 per diluted share, a $0.47 improvement from the previous year[8] - Total assets decreased to $5,521.8 million as of September 28, 2025, down from $7,229.9 million a year earlier, reflecting a reduction in goodwill and cash reserves[23] - Cash and cash equivalents at the end of the period were $620.9 million, down from $696.1 million at the end of the previous year[25] - Total liabilities decreased to $5,088.0 million as of September 28, 2025, compared to $5,920.2 million a year ago, primarily due to the reduction in current liabilities[23] Impairments and Adjustments - The company reported an impairment of goodwill amounting to $1,021.9 million for the nine months ended September 28, 2025[25] - Hasbro recorded a non-cash goodwill impairment charge of $1,021.9 million in Q2 2025, primarily affecting the Consumer Products segment[30] - Non-GAAP adjustments for the nine months ended September 28, 2025, totaled $1,111.6 million, significantly impacting the overall financial results[31] - The company incurred $25.0 million in loss on disposal of the eOne Film and TV business for the nine months ended September 28, 2025[33] Strategic Initiatives - Hasbro plans to continue investing in its core business, strengthen its balance sheet, and return cash to shareholders as part of its capital allocation priorities[10] - Strategic transformation initiatives costs for Q3 2025 amounted to $5.1 million, with anticipated long-term benefits to improve business processes[31]