Q3 2024 Hasbro Inc Earnings Call Transcript
Key Points
- Hasbro Inc (HAS) reported strong profit margins, with operating profit margin expanding for the third consecutive quarter.
- Magic: The Gathering continues to lead the trading card genre, showing growth despite tough comparisons from last year's releases.
- Licensing revenue, particularly from MONOPOLY Go, is generating approximately $10 million per month, showcasing the strength of Hasbro's IP licensing strategy.
- The company's strategic shift towards games, digital, and IP licensing is paying off, with improved profitability and cash flow expected in 2024 and beyond.
- Hasbro Inc (HAS) has successfully reduced inventory levels, achieving the healthiest inventory position in seven years, which benefits gross margins.
- Consumer products revenue came in lighter than anticipated, leading to a lowered full-year revenue guidance for this segment.
- There was a significant decline in action figures, particularly Star Wars, impacting overall revenue.
- The entertainment segment saw an 86% decline due to the E1 divestiture, affecting total revenue.
- Despite improvements, the company is still facing challenges in stabilizing the consumer products business, with revenue expected to decline 12% to 14% for the year.
- The fourth quarter is expected to see a pronounced year-over-year decline in revenue due to the timing of Magic: The Gathering releases and other factors.
And moving. Okay. Thanks. Yes, good morning, and welcome to Hasbro share quarter 2024 earnings conference call. At this time, all parties will be in a listen only mode. If anyone needs operator assistance, please press star zero on your telephone keypad. Today's conference is being recorded. If you have any objections, you may disconnect at this time. At this time, I would like to turn the call over to Kareen Kapor, Senior Vice President of Investor Relations. Please go ahead.
Thank you and good morning, everyone. Joining me today are Chris Cocks has grossed Chief Executive Officer, and Gina Goetter has gross Chief Financial Officer. Today, we will begin with Chris and Gina providing commentary on the Company's performance. Then we will take your questions. Our earnings release and presentation slides for today's call are all posted on our investor website. The press release and presentation include information regarding non-GAAP adjustments and non-GAAP financial measures. On our call
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