Toymaker Hasbro (NASDAQ:HAS) posted a 54% jump in quarterly revenue, helped by strong demand for its "Dungeons & Dragons" tabletop game.
The company’s stock rose 2.3% in pre-market trading as the company announced that its revenue was boosted by its TV production business, which benefited from vaccine rollouts and the easing of COVID-19 restrictions.
Hasbro’s entertainment division’s revenue, which includes production studio Entertainment One and other movie businesses, jumped 47% in the second quarter.
Sales of toys based on characters from movie franchises rose following the comeback of Marvel superheroes in the form of the "The Falcon and the Winter Soldier" Disney+ television series and the "Black Widow" movie.
At the same time, demand for role-playing and board games, which soared during the pandemic as parents turned to toys to keep kids occupied, also held strong.
Revenue from the consumer products segment, which includes core toy brands such as Nerf and Play-Doh as well as toys based on movie franchises, rose 33% to $689.2 million U.S.
Overall, the company’s net revenue rose 54% to $1.32 billion U.S. in the three months ended June 27, beating analysts' average estimate of $1.16 billion U.S., according to Refinitiv data.
Hasbro reported adjusted net profit of $145.4 million U.S., or $1.05 U.S. per share, in the second quarter, compared to $2.7 million U.S., or $0.02 U.S. per share, a year earlier. Analysts had expected a profit of $0.07 cents U.S.
However, the Monopoly maker stuck to its annual revenue target of double-digit growth as planned price hikes due to a rise in commodity prices and supply bottlenecks increase doubts over what demand will look like in the holiday shopping season this year.
