Happy Holidays

Media Boy UK HQ would like to wish Happy Holidays to everyone who view this blog. Don't forget Media Boy UK launches on January 4th 2025 on Blue Sky.

Thursday, 16 February 2023

eOne Takeover - Deadline: Hasbro Extends Slump, Delivering Weaker-Than-Expected 2023 Forecast Along With Soft Q4 Results

Story from Deadline:

Hasbro extended its streak of Wall Street disappointments, delivering a weaker-than-expected forecast for 2023 along with soft fourth-quarter financials reflecting a host of holiday-season challenges.

Revenue slid 17% to about $1.7 billion in the quarter, while earnings per share came in at $1.31. Hasbro is projecting 2023 adjusted earnings of $4.45 to $4.55 per share, which is well below analysts’ consensus of $4.88, according to Refinitiv.

This morning’s quarterly earnings report was in line with an early glimpse at the financials offered by the company several weeks ago, along with the news that the Rhode Island-based toymaker would lay off 15% of its workforce.

Also hanging in the balance during the period of financial challenges is eOne, the film and TV studio known for characters like Peppa Pig. Hasbro last fall announced it was shopping eOne, which it acquired for $4 billion in 2019. Along with Covid and myriad economic challenges like inflation, foreign currency fluctuations and supply-chain snags, Hasbro has also been navigating a transition of leadership. Longtime CEO Brian Goldner, who spearheaded a move into Hollywood via properties like Transformers and G.I. Joe, died at age 58 in October 2021 after being diagnosed with prostate cancer.

Hasbro said it expects 2023 adjusted earnings in the range of $4.45 to $4.55 per share, well below analysts’ average estimate of $4.88 per share, according to Refinitiv data.

“For 2023, we have a focused plan to grow share in our key categories and further improve our margins,” CEO Chris Cocks said in the earnings release. He pointed to entertainment releases based on company properties, including Dungeons & Dragons: Honor Among Thieves, which comes out in March. He said the company continues to face “a challenging consumer discretionary environment” and also will take a $300 million hit to revenue from the loss of licensing deals like a recent one with Disney’s Princesses. “Our strategy is centered on what makes our brands great – play, supported by compelling storytelling and disciplined brand management.”

© 2023 Deadline Hollywood, LLC.