PASSING GO
HASBRO SURGES AS TOYMAKER STANDS BY ITS CLASSIC BOARD GAMES.
Hasbro Inc.’ s decision to stick by Monopoly and other traditional games — a daring move in an increasingly digital world — is paying off after a robust holiday season boosted the shares the most in 16 years.
The toy maker bucked lacklustre results at Toys ‘ R’ Us Inc. and Mattel Inc., thanks in large part to games like Pie Face and Magic: The Gathering. The unit increased sales 11 per cent to US$ 518.7 million in the fourth quarter, the company said on Monday. That, along with its first Christmas season with the primary Disney Princess and Frozen licence, helped the company top analysts’ estimates for profit and sales.
“Hasbro’s gaming portfolio is unparalleled,” chief executive Brian Goldner said on a call with analysts. “It addresses broader demographics and play experiences better than any other company.”
Hasbro shares advanced as much as 17 per cent to US$ 96.34 on Monday, the biggest intraday gain February, 2001. The stock already had gained 10 per cent in the 12 months through Friday. The Nasdaq-traded shares closed Monday at US$94.31, up 14 per cent.
Revenue rose 11 per cent to US$ 1.63 billion, beating analysts’ US$ 1.5 billion average projection, Hasbro’s second- straight strong performance. Profit was US$ 1.64 a share, excluding some items, according to the Pawtucket, R. I.-based company. Analysts projected US$1.28, on average.
When computer tablets went mainstream earlier this decade, sales of traditional games suffered as consumers spent more time on mobile devices. That trend has since waned as adults and kids have reverted back to in- person experiences. Last year, industrywide sales of games in the U.S. rose 21 percent to US$ 307 million, according to NPD Group.
Hasbro gained share in major markets including the U.S ., the U. K ., China, Brazil and Russia, Goldner said. The toymaker saw strong demand across the world, especially in the U.S ., he said. That countered Mattel, which said sales significantly slowed down in the first three weeks of December.
The company also increased its quarterly dividend 12 percent to US 57 cents a share. That marked the eighth- straight year it boosted the payout.
For the year, the company reported profit of US$ 551.4 million, or US$ 4. 34 per share, compared with US $451.8 million, or US$3.57 per share, in 2015.
Hasbro expects another big year in 2017, with product tie- ins to an assortment of major movie releases including Star Wars: The Last Jedi, Disney’s Beauty and the Beast, and Spider- Man: Homecoming. The company also noted the upcoming Transformers and My Little Pony movies, which are based on its own brands.