Hasbro, Inc. reported significant financial changes in its latest 10-Q filing for the three and nine months ended September 29, 2024. The company experienced a decline in net revenues, with total revenues for the third quarter at $1,281.3 million, down 15% from $1,503.4 million in the same period last year. For the nine months, revenues decreased 18% to $3,033.9 million from $3,714.4 million. Key factors contributing to this decline included the sale of its eOne Film and TV business, broader industry trends, and reduced revenues from various product lines.
Despite the revenue drop, Hasbro reported a turnaround in profitability. The company achieved an operating profit of $301.9 million for the third quarter, compared to an operating loss of $(169.5) million in the prior year. For the nine months, operating profit was $630.2 million, a stark contrast to the $(340.2) million loss recorded in the same period of 2023. This improvement was attributed to lower costs and expenses, which totaled $979.4 million for the third quarter, down from $1,672.9 million a year earlier.
Net earnings for the third quarter were $223.3 million, a significant recovery from a net loss of $(170.4) million in the same quarter of 2023. For the nine months, net earnings reached $420.9 million, compared to a net loss of $(427.0) million in the previous year. Basic net earnings per share for the third quarter were $1.60, compared to a loss of $(1.23) per share in the prior year.
The Consumer Products segment reported revenues of $860.1 million for the third quarter, down 10% from $956.9 million, while the Wizards of the Coast and Digital Gaming segment saw revenues of $404.0 million, a decrease of 4.6%. The Entertainment segment experienced a dramatic decline, with revenues falling 86% to $17.2 million, primarily due to the sale of the eOne business.
Strategically, Hasbro completed the sale of its eOne Film and TV business to Lions Gate Entertainment for $375.0 million in cash in December 2023, which resulted in a $24.4 million loss on disposal recorded in the current reporting period. The company also noted ongoing restructuring efforts under its Operational Excellence program, which aims to enhance efficiency and may lead to further workforce reductions.
As of September 29, 2024, Hasbro's cash and cash equivalents totaled $696.1 million, a significant increase from $185.5 million at the end of the previous fiscal year. The company’s long-term debt stood at $3,462.6 million, down from $3,654.6 million at the end of the previous quarter.
About HASBRO, INC.
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