The bulk of increase in revenu came from the gaming and digital spaces, as indicated below:
Revenue increase of 20% driven by the launch of MAGIC'S Modern Horizons 3 set and continued strength in Licensed and Digital Gaming revenue behind Monopoly Go!, Baldur's Gate 3 and a benefit from an international publishing deal.
Tabletop revenue increased 3% behind growth in MAGIC: THE GATHERING.
Operating profit increased 74% and operating profit margin of 54.7% due to higher digital licensing revenue mix of revenues and lower royalty expense.
The Transformers brand was also talked about favorably. However, check how they refer to Transformers not in terms of toys, but in terms of entertainment. This is because a bulk of revenue will be coming from the upcoming Transformers 1 movie and its merchandise.
FURBY, PLAY-DOH and G.I. JOE performed well in the quarter; momentum building for 2H innovation in Beyblade and TRANSFORMERS entertainment.
So yes, adults (and teens) are now the main demographic using products that give Hasbro money. However, it's not mainly due to them spending money on toys but more on gaming and digital experiences. As you'll see below, when it comes to physical toys, Hasbro is still more focused on kids, which matches data of physical toy consumption from PYMNTS Intelligence.
“It’s about skating to where the puck is going as opposed to where the puck has been,” CEO Chris Cocks said. “I think physical products kids will always be important. But when you look at what the mega trends are inside of the business of play, play is aging up, play is going more international, it’s going more digital, it’s going more direct.”
The company generates over 60% of its revenue from consumers aged 13 and older, a group described as “kidults,” indicating a strong following among teenagers and adults. This demographic’s engagement is driven by a mix of digital innovation and strategic licensing partnerships. Hasbro’s ability to cater to this audience through products like Magic: The Gathering and digital platforms like D&D Beyond shows its adeptness at tapping into the interests of older consumers.
Still, PYMNTS Intelligence research finds that parents are hobby goods companies’ best customers. The study “The Last Transaction: Family Spending Habits Reveal Merchant Opportunities in Retail and Travel” found that 16% of those who are married with children in the household cited books, music or hobby goods as their most recent non-grocery retail purchase. This share was considerably higher than the 3% of those who are single and living with children, the 6% of those who are married and not living with children and the 10% of those who are single without children at home who said the same. Still, it is notable that the final group represents the second-greatest engagement.
Source from Hasbro: https://investor.hasbro.com/news-releas ... al-results
Analysis by PYMNTS Intelligence: https://www.pymnts.com/earnings/2024/ha ... e-digital/
