MAM

Q2-2015: Forex pulls down Hasbro revenue; Licensing & Entertainment op income halves

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2015/07/28/Untitled-1.jpg?itok=XqlFuxxF

BENGALURU: American multinational toy and board game company Hasbro, Inc., (Hasbro) reported 3.8 per cent decline in net revenue to $797.66 million in the quarter ended 28 June, 2015 (kQ2-2015) as compared to the $829.26 million in the corresponding year ago quarter  (quarter ended 29 June, 2014) impacted by negative forex of  $71.5 million says the company. If the forex loss was neglected, net revenue in Q2-2015 grew 4.8 per cent in the current quarter as compared to the previous quarter. 

For the six month period ended 28 June, 2015 (6M-2015), Hasbro reported almost flat revenue(0.2 percent higher) at $1511.16 million as compared to the $1508.72 million in 6M-2014 (six months ended 29 June, 2014).

Hasbro’s Licensing and Entertainment segment contributes around six per cent to Hasbro’s revenue. The segment reported almost flat revenue in Q2-2015 $47.64 million as compared to the $47.66 million in the corresponding year ago quarter. However, its operating income halved (declined by 49 per cent) to $7.44 million in Q2-2015 as compared to the $14.65 million in Q2-2014, primarily due to digital gaming expenses, including the final quarter of amortization expense from certain digital gaming rights says the company.

Company speak

Net earnings attributable Hasbro increased 22.7 per cent to $41.81 million (5.2 per cent of net revenue) in Q1-2016 as compared to the $33.48 million (four per cent of net revenue in Q2-2014).

"Our second quarter results continue a strong start to the year with good underlying momentum in our Franchise and Partner brands across geographies," said Hasbro chairman, president and CEO Brian Goldner. "The execution of our brand blueprint strategy, including our recent decision to sell our final manufacturing locations and the continued development of new relationships in content development, furthers the transformation of Hasbro into an organization focused on global brand building. We are well positioned for the remainder of 2015, but importantly we continue to develop our capabilities for the long-term execution of our strategy toward unlocking the full potential value of our brands."

"Our second quarter results came with numerous challenges, including a significant negative foreign exchange impact and difficult year-over-year comparisons in several brands," said Hasbro CFO Deborah Thomas. "Even with these challenges, we delivered a strong second quarter and a good first half of 2015. We continue to make important investments across our business to promote brand initiatives and to further improve the global efficiency of Hasbro. Some of these investments will be more prominent in the second half of 2015 than they were in the first six months of the year."

Segment Revenue

Licensing and Entertainment segment

Hasbro’s Licensing and Entertainment segment numbers have been mentioned above.

US and Canada segment

Hasbro’s US and Canada segment net revenues increased one per cent to $385.2 million compared to $383 million in Q2-2014. The segment's results reflect growth in the Boys and Preschool categories says Hasbro. The US and Canada segment reported operating profit of $47.1 million, essentially flat with $46.9 million in Q2-2014.

International segment

International Segment net revenues were $362.8 million compared to $396.8 million in 2014. Growth in the Preschool category was more than offset by declines in the Boys, Games and Girls categories. On a regional basis, growth in Latin America was offset by declines in Europe and Asia Pacific. Emerging markets revenues declined 11 per cent in the quarter. Excluding an unfavourable $69.5 million impact of foreign exchange, of which approximately two-thirds of the impact was in Europe and the remainder in Latin America, net revenues in the International Segment grew nine per cent and approximately nine per cent in emerging markets.

The International Segment reported operating profit of $25.4 million compared to  the $29.2 million in 2014, which was also negatively impacted by foreign exchange.

Category Performance

Boys category

Q2- 2015 net revenues in the Boys category increased one per cent to $340.4 million. This growth was driven by year-over-year revenue gains in Hasbro franchise brand Nerf, as well as shipments in support of Jurassic World and growth in Marvel and Star Wars products. These increases more than offset the anticipated decline in Transformers, which faced difficult comparisons versus the 2014 shipments in support of the theatrical release of Transformers: Age of Extinction.

Games category

Games category revenues declined six per cent in the quarter to $211.6 million. Magic: The Gathering declined in the quarter as the major set release occurred in the first quarter 2015 versus the second quarter 2014. 

Over the first six months of the year, Magic: The Gathering revenues increased. Additional revenue declines in Duel Masters and Angry Birds products were partially offset by gains in franchise brand Monopoly as well as in several other games brands including Trouble, Clue and Twister.

Girls category

The Girls category revenues declined 22 per cent in the second quarter 2015 to $127.5 million. Furby was the leading driver of this decline, along with smaller declines in Franchise Brands My Little Pony and Nerf Rebelle in the quarter. Growth in Play-Doh Dohvinci and shipments of Disney Descendants partially offset these declines.

Preschool category

Preschool category revenues increased 14 per cent in the second quarter 2015 to $118.1 million. Growth in Franchise Brand Playdoh and shipments of Jurassic World more than offset revenue declines in core Playskool products.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/Digital.jpg?itok=LM0bBxXP
Digital will be core of ad budgets by 2020: DAN report

MUMBAI: The increasing penetration of digital media in India is creating huge opportunities for marketers to reach out to untapped audiences in newer ways than before. Marketers are getting innovative with the way they choose to advertise to their audience.

MAM Media and Advertising Digital Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/voda.jpg?itok=llTNSmks
Vodafone brings back the Pug in AR

MUMBAI: Television viewers and spectators at Sunday’s grand finale of the Vodafone Premiere Badminton League broke into impromptu smiles when they realised they had unexpected company.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/smart.jpg?itok=5qxiMtZr
Smartworks shows tech-friendly office in new ad

MUMBAI: Provider of shared work spaces, Smartworks has launched its second brand video featuring the benefits of hassle free technology to enhance collaboration and productivity for its members.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/rs.jpg?itok=cJF-fG9v
Ramesh & Suresh get 'lost' again in Cadbury 5Star 3D

MUMBAI: Ramesh and Suresh are back and this time they are lost at a whole new level. Over the last twelve years, Cadbury 5Star has entertained viewers bringing to them ‘lost’ antics of the iconic duo of Ramesh and Suresh.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/amazon.jpg?itok=SP1ttU6t
Amazon says out with the old in Great Indian Sale ads

MUMBAI: E-commerce giant Amazon has launched its new campaign ‘Ab Sehan Kyun Karna’ in tandem with its first Great Indian Sale for 2018. The message to the customers is to do away with the old and usher in the new for the new year. The campaign features a series of ads on various situations in...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/rajiv.jpg?itok=gbuyOtMO
WATConsult celebrates 11 yrs with unique board game

MUMBAI: WATConsult, the digital and social media agency from Dentsu Aegis Network, has launched PlayAgency, an innovative board-game, as part of its 11th anniversary celebration. To break the monotony of regular anniversary campaigns, the agency came up with something unique which caters to all...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/15/arpila.jpg?itok=Ea7gQg73
Dentsu Webchutney launches digital campaigns for Vespa Red and Aprilia

Dentsu Webchutney has created a digital campaign for Piaggio India’s trendsetting Vespa Red that was launched the month of October last year. It is an extension of its existing global collaboration with Red, an organisation that partners with global brands to create awareness and support the fight...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/15/mentos.jpg?itok=_nB6UHxV
Perfetti Van Melle hands over media duties to Wavemaker

Perfetti Van Melle India has handed over its media duties account to GroupM’s content and technology agency Wavemaker.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/15/rising.jpg?itok=wfrpl5-l
The rising trend of coopetition among brands

MUMBAI: Who would have thought that companies would overcome their ego and actually collaborate with other brands to come up with joint advertisements? That is the new trend in the market-coopetition (a combination of cooperative and competition).

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories