BENGALURU: American multinational toy and board game company Hasbro, Inc., (Hasbro) reported 9.7 per cent growth in adjusted net earnings to US$ 408.7 million for the year ended 28 December, 2014 (FY-2014, current year) as compared to the US$ 372.4 million for the year ended 29 December, 2013 (FY-2013, previous year). The company says that revenues of six of the seven franchisee brands – Magic: The Gathering; Monopoly; My Llittle Pony; Nerf; Play-doh; Transformers were up 31 per cent in FY-2014 as compared to the FY-2013 and grew 30 per cent in Q4-2014 as compared to Q3-2013.
Net revenues for the full-year 2014 increased 5 per cent to US$ 4.28 billion compared to US$ 4.08 billion in 2013. Excluding a negative US$ 93.4 million impact from foreign exchange, FY-2014 revenues increased 7 per cent says the company. For the fourth quarter 2014, net revenues increased 1 per cent to US$ 1.30 billion versus US$ 1.28 billion in Q4-2013. Excluding a negative US$ 75.4 million impact from foreign exchange, Q4-2014 revenues increased 7 per cent.
“2014 was a good year for Hasbro. We grew revenues, profitability and returned significant capital to our shareholders,” said Hasbro’s president and CEO Brian Goldner. “These results highlight the power of building innovative brand experiences based firmly in global consumer insights and supported by compelling stories. Investments in our brand blueprint are unlocking value in our brand portfolio and we begin 2015 well positioned to capitalise on our efforts in ‘Creating the World’s Best Play Experiences’.”
Category performance
The boys’ category was the only one of the four categories that reported growth both in FY-2014 as compared to FY-2013 as well as in Q4-2014 as compared to Q4-2013.
While two of the four categories reported a fall, boys’ category reported a 20 per cent growth in net revenue to US$ 1484 million in FY-2014 from US$ 1237.6 million in the previous year. The company says that Growth in Transformers, Nerf and Marvel properties more than offset declines in Beyblade.
For Q4-2014, Boy’s category revenue improved 21 per cent to US$ 421.9 million as compared to the US$ 349.1 million in the corresponding year ago quarter.
Games category reported a 4 per cent fall in FY-2014 to US$ 1259.8 million from US$ 1311.2 million in FY-2013. Hasbro says that Growth in Franchise Brands Magic: The Gathering and Monopoly, as well as Simon and The Game of Life in 2014, was offset by declines in Duel Masters, Twister and Angry Birds games. Revenue from this segment also saw a 4 per cent decline in Q4-2014 to US$ 418.3 million as compared to the US$ 437.4 million in Q4-2013.
The girls’ category reported an increase of 2 per cent in the current year to US$ 1022.6 million from US$ 1001.7 million in FY-2013. Revenue growth in My Little Pony, My little Pony Equestria Girls,Nerf Rebelle and the introduction of Play-doh Dohvinci offset declines in Furby. This category also saw a steeper fall of 10 percent in Q4-2014 to US$ 312.4 percent from US$ 348.8 million in the corresponding quarter of last year.
Pre-school category also fell by 4 per cent in FY-2014 to US$ 510.8 million in the current year from US$ 531.6 million in the previous year. Play-doh and Transformers Rescue Bots revenue growth was more than offset by declines in other preschool initiatives, including core Playskool and Sesame Street products informs the company. Pre-school category reported a slight decline in revenue at US$ 146 million in the current quarter as compared to the US$ 146.6 million in Q4-2013.
Segment revenues
US and Canada
US and Canada segment reported 0.8 per cent growth in FY-2014 revenue to US$ 2022 million from US$ 2006 million in the previous year. Revenue for Q4-2014 was almost flat (declined 0.4 per cent) at US$ 537 million as compared to the US$ 539 million in the year ago quarter.
International
International segment reported a healthy 8 per cent growth in revenue to US$ 2023 million from US$ 1873 million in FY-2013. Revenue from this segment increased 1.7 per cent to US 671 million in Q4-2014 from US$ 660 million in Q4-2013.
Entertainment and Licensing
Entertainment and Licensing segment reported 14.7 per cent revenue growth to US$ 219 million in FY-2014 as compared to the US$ 191 million in the previous year. For Q4-2015, revenue from this segment grew 10.5 per cent to US$ 84 million from US$ 76 million in Q4-2013.