Hasbro raises annual revenue forecast on strong demand for digital games
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Oct 20 : Toymaker Hasbro raised full-year forecast for both overall revenue and its digital gaming business on Tuesday, as its flagship trading card game, "Magic: The Gathering", powers demand ahead of the crucial holiday season.
The Play-Doh maker has posted seven straight quarters of gains in digital gaming, which also includes Monopoly Go!, while stronger sales of collectibles linked to Marvel, K-Pop Demon Hunters and Transformers boosted demand for traditional toys. Its shares were up 5 per cent.
The Wizards of the Coast and Digital Gaming segment, the company's second-largest revenue generator, grew 31 per cent during the third quarter. Revenue from the consumer products segment rose 4 per cent.
Quarterly revenue from "Magic: The Gathering" gaming franchise topped $600 million for the first time, up 34 per cent from a year earlier, fueled by premiere sets — The Hobbit and Reality Fracture.
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Company executives now expect annual revenue in this segment to grow between 16 per cent and 18 per cent, versus the previous forecast of low double-digit range.
"Hasbro's continued momentum is a sign that great play and collectible experiences remain top of mind for American consumers" despite inflationary pressures, said James Zahn, editor-in-chief at the Toy Book magazine.
Hasbro expects fiscal 2026 revenue to grow in the range of 7 per cent to 9 per cent on constant currency basis, compared with its prior forecast a 5 per cent to 7 per cent rise.
"We are continuing to see a pretty resilient consumer," Chief Financial Officer Gina Goetter said on a post-earnings call, adding the company enters the holiday season in good shape operationally.
Hasbro has benefited from strategic partnerships and its investments in digital gaming and product innovation, while rival Mattel faces investor pressure to better monetize its intellectual property.
Quarterly revenue of Hasbro, which also doubled its share repurchase target for the year to about $400 million, stood at $1.60 billion. That beat analysts' average estimate of $1.48 billion, according to data compiled by LSEG.
Adjusted profit per share of $2.90 also beat the estimate of $1.86. The company's results included about $55 million of tariff refunds.
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