As of 1/1/2024, Hasbro now has a $0 net income for all of 2019-2023

[FirePuppy 630]

I have some shocking news. Exactly 30 days ago, Hasbro reported a record-breaking loss of over $1 billion in just 3 months. That's more than 6 TIMES how much YouTube was once fined by the FTC (only $170 million)! Because of this, Hasbro is apparently now down to a maximum $0 net income within all 60 whole months from 2019 to 2023, which also means all net incomes for Rainbow Roadtrip, Pony Life and EVERYTHING from Generation 5 of My Little Pony (A New Generation, Make Your Mark, and probably Tell Your Tale as well) are now gone.

Trust me, if Hasbro hadn't merged with Entertainment One in the first place (I believe that's what they did in 2019), they could have afforded more international productions of Rainbow Roadtrip, Pony Life, and the rest of the Equestria Girls specials. Either way, this is already looking like a disaster for Hasbro and its divisions.

 

Sources:

https://icv2.com/articles/news/view/56234/hasbro-loses-1-06-billion-q4

https://www.macrotrends.net/stocks/charts/HAS/hasbro/net-income

Edited March 14 by FirePuppy

[North Star 4,540]

I knew they were struggling. The reason given by this analyst is pretty depressing

Quote

As I noted in a Feb. 9 column, “Sinking U.S. fertility rates are likely to undermine the businesses of companies whose products are primarily used by children.” After reporting that from 2007 to 2022, the birth rate tumbled nearly 23%.” I identified toy maker Hasbro (NASDAQ:HAS) as one of the firms that was being undermined by the latter trend.  

Also toys getting cheaper and parents' values changing - these millennials want their toys to be less war-like apparently. 

https://markets.businessinsider.com/news/stocks/stocks-to-avoid-3-companies-you-have-no-business-buying-today-1033143623

It's future seems to be DnD, cards and AI now. Maybe the next step is MLP: Ponies n' Dragons? 

[Goat-kun 2,500]

H-Bro don't have none o dat skibidi gyatt Ohio rizz. They're bleeding on death's door and the only ace up their sleeve is a black Aragorn MTG card. They ded.

Edited March 14 by Goat-kun
fanum tax

[Starlight Serenade 560]

I recall seeing their release a few weeks ago. There are more in depth details from their financial statements and news releases section on the Hasbro site (dated 02/13/2024):

https://investor.hasbro.com/news-releases/news-release-details/hasbro-reports-fourth-quarter-and-full-year-2023-financial

Here is an excerpt from their "Full Year 2023 Segment Details".

Full Year 2023 Segment Details

• Consumer Products Segment
  • Revenue decrease of 19% driven by business exits, category trends and inventory management.
  • Full year growth in TRANSFORMERS and G.I. JOE; FURBY performed well in launch year.
  • Operating margin of -2.2% and adjusted operating margin of -0.7% were driven by lower revenues and actions focused on inventory reduction to reset the business.

• Wizards of the Coast and Digital Gaming Segment
  • Revenue increase of 10% driven by increase in Licensed Digital Gaming revenue behind Baldur's Gate III from Larian Studios and Monopoly Go! from Scopely.
  • Tabletop revenue increased 1% behind growth in MAGIC: THE GATHERING with a strong performance from the Universes Beyond Lord of the Rings: Tales of Middle-earth sets.
  • Operating profit declined 2% and operating profit margin of 36.1% due to higher royalty costs associated with Universes Beyond.

• Entertainment Segment
  • Revenue decline of 31% driven by lower Film and TV revenue due to the writers' and actors' strikes; Family Brands revenue grew 6%.
  • Operating loss of $1,912 million compared to operating profit of $23 million in 2022. 2023 loss includes $1,846 million (non-cash) of goodwill and intangible asset impairment associated with the eOne Film and TV business and within Family Brands to align with a change in entertainment strategy.
  • Adjusted operating loss of $46 million compared to adjusted operating profit of $83 million in 2022 due to the impact of industry strikes on content deliveries

Here is also their 2024 Company Outlook:

2024 Company Outlook¹

For the full year, the Company expects:

• Consumer Products Segment revenue down 7% to 12% with 4 points of the decline coming from businesses shifting to an out-license model; Operating margin 4% to 6%.
• Wizards of the Coast Segment revenue down 3% to 5% decline largely driven by second half comp in licensed digital gaming; Operating margin 38% to 40%.
• Pro-Forma Entertainment segment revenue down $15 million; Adjusted operating margin of approximately 60%.
• Total Hasbro, Inc Adjusted EBITDA of $925M to $1B.
• Increased mid-term gross savings target to $750M by year end 2025 from previous target of $350M to $400M.

2024 Capital Allocation priorities:

• Invest in core business.
• Return cash to shareholders through the dividend.
• Continue to pay down debt and progress towards leverage target.

¹The Company is not able to reconcile its forward-looking non-GAAP adjusted operating profit margin and adjusted EBITDA measures because the Company cannot predict with certainty the timing and amounts of discrete items such as charges associated with its cost-savings program, which could impact GAAP results.

 

My quick take: So declines in Consumer Products Segment and Entertainment Segments were too big to offset for the inventory write offs and revenue increases from their digital gaming segment. From the outlook they expect it to keep to decrease. On top of this, they are trying to reduce debt owed AND pay cash dividends to shareholders which will be declared soon. They are definitely going to have more cuts coming and throw out some cash grabs probably in MTG. That huge operating loss from their eOne Film and TV business in their entertainment segment and writer's strike really did a mark on them too. It is definitely a disaster for Hasbro.

3 hours ago, North Star said:

I knew they were struggling. The reason given by this analyst is pretty depressing

Also toys getting cheaper and parents' values changing - these millennials want their toys to be less war-like apparently. 

https://markets.businessinsider.com/news/stocks/stocks-to-avoid-3-companies-you-have-no-business-buying-today-1033143623

It's future seems to be DnD, cards and AI now. Maybe the next step is MLP: Ponies n' Dragons? 

Mmmm they did announce new MTG MLP cards back in 2023 and those sold out fast. So I can see something like that.

Edited March 14 by StarlightNyars
edits

[FirePuppy 630]

2 hours ago, StarlightNyars said:

My quick take: So declines in Consumer Products Segment and Entertainment Segments were too big to offset for the inventory write offs and revenue increases from their digital gaming segment. From the outlook they expect it to keep to decrease. On top of this, they are trying to reduce debt owed AND pay cash dividends to shareholders which will be declared soon. They are definitely going to have more cuts coming and throw out some cash grabs probably in MTG. That huge operating loss from their eOne Film and TV business in their entertainment segment and writer's strike really did a mark on them too. It is definitely a disaster for Hasbro.

That's right, and if the net income continues going down like this, Hasbro may be forced to end all streaming of A New Generation, Make Your Mark and Tell Your Tale on Netflix later this year, or more likely by the time their contract with Discovery Family is also up -- unless, of course, the operating expenses decrease.

Edited March 14 by FirePuppy