October 26, 2021 – Hasbro Growth Driven By Wizards of the Coast and Digital Gaming Segments. The company released its 2021 third-quarter financial results today and the headline boasted that much of its strong results were a result of tabletop gaming.

“Differentiated business model drives growth led by Entertainment and Wizards of the Coast and Digital Gaming segments”

  • Third quarter 2021 revenues up 11% to $1.97 billion
    • Entertainment segment revenue up 76%
    • Wizards of the Coast and Digital Gaming segment revenue up 32%
    • Consumer Products segment revenue down 3%
  • Operating profit of $367.9 million, or 18.7% of revenues, up 9%
  • Adjusted operating profit of $389.6 million, or 19.8% of revenues, up 6%
  • Net earnings of $253.2 million, up 15%, or $1.83 per diluted share
  • Adjusted net earnings of $271.2 million, up 5%, or $1.96 per diluted share
  • Nine-month operating cash flow of $685.6 million
  • Further reduced debt and maintained a strong cash position
    • Repaid $400.0 million of debt and funded the quarterly dividend
    • Quarter ending cash of $1.18 billion

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Back in February of 2021, Hasbro outlined its plan for growth and had this to say in their presentation. “Wizards of the Coast is of particular interest to any tabletop fan because they, among other top brands, house the Magic the Gathering and Dungeons & Dragons brands. And this is in addition to Hasbro’s already sturdy stable of family games and other board game titles outside of the WOTC brand.” In 8 short months, they have put a lot of what they had blueprinted into place and it appears to be working out well.

Wizards of the Coast and Digital Gaming segment revenue grew led by tabletop and digital gaming revenues for MAGIC: THE GATHERING, DUNGEONS & DRAGONS and licensed digital gaming. Successful MAGIC: THE GATHERING releases of Adventures in the Forgotten Realms and Innistrad: Midnight Hunt have continued to drive strong demand for MAGIC. Operating profit grew behind increased revenues which were partially offset by higher expenses to support new game launches, including incremental product development and advertising, as well as higher digital game depreciation.

Hasbro Gaming revenue increased, led by tabletop and digital gaming growth including DUNGEONS & DRAGONS as well as many classic games such as THE GAME OF LIFE, CONNECT 4 and GUESS WHO.

Check out the full earnings report released on the Hasbro site.

Are you surprised about the Hasbro growth driven by Wizards of the Coast and digital gaming segments in Q3 earnings? Let us know your thoughts in the comments below!