Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue

Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue

Monday, July 24th, 2017 4:05pm CDT

Categories: Movie Related News, Toy News, Company News
Posted by: Va'al   Views: 32,082

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Not many people read through the Earnings release that Hasbro sends our way every quarter, and not everyone can attend the freely available conference calls either. To help us out this time, Hasbro has also offered a full transcript and presentation to anyone - rather than having news sites transcribe things themselves - and we've copied below the more salient and relevant parts to the Transformers brand.

But first, along with the slides that were used during the call, we've also listened to the call again to make sure we noted down a number of questions related to Transformers: The Last Knight and the brand in general, toys in particular, affected the way that the company will be directing its efforts in the coming quarter and future development of the 'brand blueprint', courtesy of Debbie Hancock and Brian Goldner (who calls the Generations line Universe, but hey). The UK and Brazil have not ideally impacted the company either, but the overall Latin American and European markets have remained positive, and most noteworthy of all: despite the not ideal performance of the movie in general, everything seems to be much better in toy and merchandise perspectives compared to 2014 with Age of Extinction.

Read more below, and note that actual revenue from licensed material for The Last Knight will only appear in the fourth quarter!

Question 1: There seems to be a narrative that movie properties did not perform to expectations during this quarter, which seems to be at odds with your commentary on the Transformers franchise. Could you address how you see the company position for the second half in terms of inventory level, shelf space and retailers dedicate to your brand?

Brian Goldner: Of course, Drew. Entertainment continues to drive our business through and if you look at Transformers, we now have entertainment across multiple screens and in fact we are targeting and presenting stories to an infinite number of demographics around the brand. Certainly Transformers: The Last Knight products sold very well and point of sales was very strong. The brand is up considerably. And then of course we also have Robots In Disguise products that’s around the television. We also have Universe product that’s focused on our fans.

That is also selling incredibly well and then there is of course preschool product Rescue Bots which is also selling quite well. So we are seeing a great sell-through around the brand, recognize that this is a brand that’s becoming Increasingly Global, Increasingly International. We’re seeing great growth in places like China around the brand and around our international market.

Question 2: Can we go back to Transformers for a moment Brian because you mentioned the strength of Global POS and that is up significantly and against the last movie (2014). Would it be fair to assume that The Last Knight could generate revenue higher than the 2014 movie, which you said at the time was kind of in-line with the 2011 movie?

Brian Goldner: Yeah, I think Transformers is in fact emblematic of what we’re doing across the company over the last three years; we have developed digital capabilities for stream content and putting content on a multitude of screens. That capability is really being born out in the Transformers business. So the overall brand is performing at a much higher level than it was in 2014, and in part that’s because the movie product is performing at a higher level than the prior year but also because we are seeing great growth in the Transformers: Generations products for the fan-economy. The Robots In Disguise product that’s been around the television. Television viewership is strong, our streaming on Netflix is very strong, and then of course the fan-oriented stream product that goes, our on content that streams with Machinima and MCM. That’s how I look at it as an expansion of storytelling. The brand did perform quite strongly in ’14 but also performed strongly in ’15 and ’16. This is clearly more in line with the movie year performance being up for the brand.

So to understand: movie-to-movie it seems like this movie is better and then you layer on kind of everything you do with your brand blueprint and how you kind of expand brands and then kind of putting it all together. The franchise in general has grown but the movie also seems better?

Brian Goldner: Yeah, it is. The performance is good. Remember that that movie has continued to perform incredibly well globally outside the US. We just surpassed 225 million dollars in China, the movie’s done more than 550 million dollars so far. And also with all of our entertainment globally, yes we are over POS compared to the last movie year. It’s coming from a number of new areas of our capabilities that we’ve developed over the last three years.


Brian Goldner: Royalty expense increased 14% to 8.1% of revenue. Higher royalty expense was the result of higher Partner Brand revenues, but also a strong contribution from Transformers: The Last Knight movie product which carries some external royalties. Our investment in product development remained flat year-over-year but declined as a percentage of revenues. We continue to invest in innovation at an industry-leading level.


Transformers News: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue

Transformers News: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue

Transformers News: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue

Transformers News: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue

Transformers News: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue

Transformers News: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue

Credit(s): Hasbro


This article was last modified on Monday, July 24th, 2017 4:08pm CDT

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Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899329)
Posted by Bronzewolf on July 24th, 2017 @ 4:46pm CDT
Sammythekat has once again shot a piece of news our way. This time, it's a brand new video review of the Transformers The Last Knight Planet Cybertron! The video, from Baltmatrix, shows off the figure (and it's highly-debated paint scheme) very well! Check it out below!
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899344)
Posted by Qwan on July 24th, 2017 @ 5:29pm CDT
Brian Goldner wrote:this is a brand that’s becoming Increasingly Global, Increasingly International.
I don't know why exactly, but the capitalization here just really gets me. :lol: It'd make a great tagline, or a position title for someone important. "Seibertron: Increasingly Global, Increasingly International".
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899345)
Posted by Bronzewolf on July 24th, 2017 @ 5:33pm CDT
Qwan wrote:
Brian Goldner wrote:this is a brand that’s becoming Increasingly Global, Increasingly International.
I don't know why exactly, but the capitalization here just really gets me. :lol: It'd make a great tagline, or a position title for someone important. "Seibertron: Increasingly Global, Increasingly International".

Increasingly Redundant, apparently, as well. :lol: :-P
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899539)
Posted by william-james88 on July 25th, 2017 @ 10:00am CDT
By this point, you would think the entire line has been fully revealed, especially since SDCC had figures we had all seen before. But there are still some figures that we never had official images for, like Turbo Changer Scorn. His listing is up at Target right now, as is the listing for Turbo Changer Cogman and Drift. These are the rebranded one steps which feature the words "Cyber Fire" to promote the gimmick of having fire revealed when you shine a UV light on them (provided by the big Turbo Changer Dragonstorm). While we have seen some images of these before, here they all are again withthe new Scorn images. Enjoy!

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Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899654)
Posted by Cybertronius Primus on July 25th, 2017 @ 3:21pm CDT
It doesn't look to bad but I've already got the original, so I think I'll pass.
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899736)
Posted by -Kanrabat- on July 25th, 2017 @ 8:03pm CDT
Turbo changer Scorn look really awesome! I'm actually impressed.
The cars look like garbage, as usual.

BTW, I sighted deluxe Slog at Walmart.
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899762)
Posted by william-james88 on July 25th, 2017 @ 10:29pm CDT
-Kanrabat- wrote:Turbo changer Scorn look really awesome! I'm actually impressed.
The cars look like garbage, as usual.

BTW, I sighted deluxe Slog at Walmart.

I think you mean Slug, and yeah he's been there for a good month now. Pick up his wavemate Sqweeks when you can, you wont regret it!
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899789)
Posted by -Kanrabat- on July 26th, 2017 @ 12:39am CDT
william-james88 wrote:
-Kanrabat- wrote:Turbo changer Scorn look really awesome! I'm actually impressed.
The cars look like garbage, as usual.

BTW, I sighted deluxe Slog at Walmart.

I think you mean Slug, and yeah he's been there for a good month now. Pick up his wavemate Sqweeks when you can, you wont regret it!


I dunno. I'm on the fence on that one. I unloaded so many of that kind on purchases on my local geek store for buying vintage G1s. I then swore to myself to only buy the transformers who seriously pull at my heartstrings now. Even if the thing is on sale, if I stay stone cold toward it, it will stay on the peg/shelf.
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899839)
Posted by Kotori_Sonoda on July 26th, 2017 @ 7:45am CDT
I'm surprised at Scorn, probably one of the better looking one steps out there.
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899907)
Posted by D-Maximal_Primal on July 26th, 2017 @ 1:46pm CDT
I'm sort of laughing right now. The wave 3 voyagers came in stock at TFsource (I got both), yet my local stores are still stuck with lots of wave 1 stuff.
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899948)
Posted by WreckerJack on July 26th, 2017 @ 6:12pm CDT
Transformers: The Last Knight Reveal The Shield Turbo Chargers 6 Packs have been found in Chile. They were sighted in a store called Parìs (Not to be confused with the city in France of course!) This set contains Optimus Prime, Bumblebee, Grimlock, Hound, Barricade and Megatron.

If you find any new figures or merchandise please let us know!

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Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899965)
Posted by Decepticon Stryker on July 26th, 2017 @ 8:11pm CDT
So I've been going back and forth between this and I've finally decided to ask you guys:
Should I get TLK Deluxe Slash? Is he a good figure? Or is he just a figure like Steelbane: cool looking, but bad qc?
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899968)
Posted by Autobot N on July 26th, 2017 @ 8:31pm CDT
Decepticon Stryker wrote:So I've been going back and forth between this and I've finally decided to ask you guys:
Should I get TLK Deluxe Slash? Is he a good figure? Or is he just a figure like Steelbane: cool looking, but bad qc?
I've got the AOE one. QC isn't bad, but the figure just kinda sucks.
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1899976)
Posted by Qwan on July 26th, 2017 @ 9:23pm CDT
Decepticon Stryker wrote:So I've been going back and forth between this and I've finally decided to ask you guys:
Should I get TLK Deluxe Slash? Is he a good figure? Or is he just a figure like Steelbane: cool looking, but bad qc?
I haven't had any versions of that mold so I'm probably not the best person to give advice here, but the main deciding factor for me was that I don't really like the way he looks, and also the somewhat uncommon - but very frustrating - issue of mandatory sideways-elbow-action in robot mode (i.e. no forward bend at the elbows, much like CW Long Haul and quite a few of the AoE Dinobots). If you like the aesthetics of him (and admittedly, the toned-down colors on the TLK version do look objectively much better, even if they lose some of the 'bizarre' appeal the original had) and don't mind the elbows (which I certainly do :BANG_HEAD: ) then I'm sure he's a fine figure.

But then I guess you have to take the "Premier markup" into account, and suddenly it's even harder to pull that trigger...
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1900013)
Posted by Decepticon Stryker on July 27th, 2017 @ 6:30am CDT
So I just saw on the side of the road a semi with a yellow trailer with Optimus, Bumblebee, and the Hasbro logo on it. I couldn't take a picture cause it was 3 in the morning and I was driving. Thought I'd file this in here since it was their TLK versions. I don't know if this has any significance but it was pretty cool.
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1900081)
Posted by D-Maximal_Primal on July 27th, 2017 @ 2:29pm CDT
Decepticon Stryker wrote:So I've been going back and forth between this and I've finally decided to ask you guys:
Should I get TLK Deluxe Slash? Is he a good figure? Or is he just a figure like Steelbane: cool looking, but bad qc?

Basically what N said. The figure looks cool, but it is not overly functional. all the extra feathery sorts of things get in the way, so he isn't as good as he could be
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1900227)
Posted by King Kuuga on July 28th, 2017 @ 4:56am CDT
Va'al wrote:Not many people read through the Earnings release that Hasbro sends our way every quarter, and not everyone can attend the freely available conference calls either. To help us out this time, Hasbro has also offered a full transcript and presentation to anyone - rather than having news sites transcribe things themselves - and we've copied below the more salient and relevant parts to the Transformers brand.

But first, along with the slides that were used during the call, we've also listened to the call again to make sure we noted down a number of questions related to Transformers: The Last Knight and the brand in general, toys in particular, affected the way that the company will be directing its efforts in the coming quarter and future development of the 'brand blueprint', courtesy of Debbie Hancock and Brian Goldner (who calls the Generations line Universe, but hey). The UK and Brazil have not ideally impacted the company either, but the overall Latin American and European markets have remained positive, and most noteworthy of all: despite the not ideal performance of the movie in general, everything seems to be much better in toy and merchandise perspectives compared to 2014 with Age of Extinction.

Read more below, and note that actual revenue from licensed material for The Last Knight will only appear in the fourth quarter!

[lots of patting ourselves on the back]

I took a shot every time they said "brand" and now I'm sitting in the hospital with alcohol poisoning. Maybe Hasbro will pay my medical bills since they're so profitable. :P
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1900596)
Posted by Bronzewolf on July 29th, 2017 @ 12:49pm CDT
Thanks to a Spanish-language Hasbro catalog, we have some new, higher-quality versions of the stock photography for Transformers The Last Knight deluxe Crosshairs and Strafe, and then Leader Class Dragonstorm! The new photos show off each figure's Robot mode, alt mode, and box very nicely, and give another good look at Strafe's new paint job, and Crosshair's newly-retooled trenchcoat! Check them all out mirrored below!

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Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1900603)
Posted by Bronzewolf on July 29th, 2017 @ 1:01pm CDT
Man, I'll have to get myself a Crosshairs. Missed him the first time around, and now he's even better, it seems. Can't wait to find this wave.
Re: Hasbro Answers How Transformers: The Last Knight Affected Sales and Revenue (1900629)
Posted by Va'al on July 29th, 2017 @ 3:11pm CDT
Via fellow Seibertronian carytheone, we have our first sighting of the Walmart exclusive Flip and Change Bumblebee from the Autobots Unite subline for Transformers: The Last Knight! The figure comes in the same wave as Hot Rod, also with simplified transformation, though not pictured below - found at a store in Baton Rouge, Louisiana, for $19.87.

If you come across this or any other figures, make sure to let other fans know through our Sightings Sections and Database - and as always, happy hunting!

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