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Hasbro saw first-quarter film and TV revenues trail surging toy sales as it deals with the continuing impact of the pandemic.
The toy giant, which released its latest financial results on Tuesday, saw overall revenue rise 1 percent to $1.11 billion dollars as its consumer products division reported toy sales, underpinned by its Play-Doh, Nerf and Transformers brands, rising 14 percent to $653.9 million.
But film, TV and entertainment revenue dropped 34 percent to $194.3 million as Entertainment One saw theatrical revenue tumble and TV deliveries delayed to later in 2021.
Hasbro’s overall business swung to a first-quarter profit of $116.2 million, compared to a loss of $67.7 million in 2020, as the company continues to recover from the impact of the COVID-19 crisis.
“We clearly believe in the continued growth of the eOne business over the longer term,” Hasbro CEO Brian Goldner told analysts during a morning conference call that focused on delivery timings and the development pipeline for eOne’s film and TV business for the rest of the year and beyond.
Paramount’s Snake Eyes: G.I. Joe Origins action movie is set for a July 23 release, and TV episode deliveries of ABC’s The Rookie and Freeform’s Cruel Summer have begun. Paramount and eOne are also moving ahead on the untitled movie adaptation of the Dungeons & Dragons game franchise, while eOne, as Hasbro’s entertainment studio, is developing new film and TV adaptations of the Power Rangers property.
Goldner added scripted TV deliveries would rise over the rest of the year, and the toy giant was targeting the entertainment division returning to 2019 levels of film and TV revenue by the end of fiscal 2021. Hasbro also has a deal to sell eOne’s non-core music business to Blackstone for $385 million, with the proceeds to be used for debt reduction and general corporate purposes.
“Music was not the primary driver of our acquisition of eOne,” Goldner said, while Hasbro CFO Deb Thomas told analysts the company would “focus on strategic elements of the acquisition and how they fit into our brand blueprint.” Hasbro bought eOne, including its Peppa Pig and PJ Masks kids properties and a global film and TV production and distribution business, for $4 billion in 2019.
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