Earlier this week, Mattel and Hasbro announced that they have entered into multi-year licensing agreements to create co-branded toys and games from some of their most popular brands.
Shares of Hasbro Inc (NASDAQ: HAS) and Mattel Inc (NASDAQ: MAT) edged higher on Thursday, April 28, 2023, after the two veteran toy companies reported first-quarter financial results. Hasbro shares closed Thursday trading at $58.93, up 14.63 percent from the day’s opening price. On the other hand, MAT shares closed the day trading at $18, up 6.07 percent from the opening price.
Hasbro Q1 Financial Results
According to the company’s Q1 2023 financial results, Hasbro topped analysts’ expectations after reporting net revenue of $1 billion, whereas Wall Street estimated the toy company would post net revenue of $878.4 million during the quarter.
Nevertheless, the company’s revenue declined by approximately 14 percent from $1.16 billion during the same period last year.
Notably, the company’s wizards and digital gaming net revenue increased by 12 percent YoY with growth in both MAGIC and D&d. MAGIC Reportedly, THE GATHERING reported revenue growth of about 16 percent.
“We expect the positive momentum for MAGIC to continue with Q1 also seeing one of our most successful pre-orders ever for our upcoming Universes Beyond The Lord of the Rings: Tales of Middle-Earth set which will launch in late Q2. Given our release calendar, we expect revenue for MAGIC to be down in Q2 but up solidly in Q3 and for the full year,” Chris Cocks, Hasbro CEO, noted.
Mattel Q1 Results
During the first quarter, Mattel posted net sales of about $815 million, down 22 percent YoY. As a result, the company noted that its net loss for the first quarter came in at approximately $106 million, compared to last year’s net income of about $21 million.
“While retail inventory management impacted the first quarter’s results, the underlying business performed well. Mattel achieved growth and gained market share, per Circana. The fundamentals of our business are strong. We expect to outpace the industry, gain market share, and achieve our full-year guidance. We are well positioned to continue executing our multi-year strategy and create long-term shareholder value,” Ynon Kreiz, Chairman and CEO of Mattel, noted.
Mattel and Hasbro: Future Outlook
Earlier this week, Mattel and Hasbro announced that they have entered into multi-year licensing agreements to create co-branded toys and games from some of their most popular brands. Reportedly, Hasbro will create Barbie-branded Monopoly games that are expected to launch later in 2023. On the other hand, Mattel will produce Transformers-branded UNO games, which will similarly be released later this year. Additionally, Mattel will debut Transformers-branded Hot Wheels vehicles early in 2024.
“With the major theatrical releases of the Transformers and Barbie movies in summer 2023, we’re excited to bring brand-new play experiences to fans, families, and movie and toy lovers all around the world,” said Casey Collins, President, Global Licensed Consumer Products & Business Development.