You will be redirected back to your article in seconds

Hasbro profits slip 1% in Q4

The holidays weren’t as giving as Hasbro had hoped — the company saw profits slip 1% during the fourth quarter, when toymakers typically generate a large portion of their annual sales — but the toymaker is counting on its Hollywood properties to bolster its bottom line going forward.

While revenue did rise 4% to $1.3 billion, driven by overseas biz and gains in Hasbro’s boys and pre-school lines, profits came in at $139.1 million for the three-month period that ended Dec. 25.

Sales were off 2% in the U.S. and Canada to $593 million but rose 8.4% overseas to $669.8 million, especially in Asia, Europe, Latin America and Mexico.

Hasbro saw softer returns from its girls, games and puzzles groups, which includes Battleship, Monopoly, Risk, Ouija and Candy Land, all properties being adapted into films. “Battleship” sets sail at plexes in May.

“We did not meet our expectations for growth in the U.S. and Canada segment, as we experienced weaker demand than we had anticipated, especially post-Thanksgiving, including challenges in the games and puzzles category,” off 11%, said Hasbro prexy-CEO Brian Goldner.

Company tapped Wiebe Tinga to lead the division and boost sales after growing Hasbro’s toy line in emerging markets.

That group already has been updating boardgames by adding interactive technology (electronic dice for Yahtzee and a digital bank to Monopoly, for example) while creating digital versions for online play.

“We continue to believe that through a combination of face-to-face, off-the-board and digital gaming, there is an opportunity to grow our gaming business,” Goldner said in a conference call with analysts.

Goldner also told analysts he believes adaptations of Hasbro’s properties as films and TV shows will help increase interest in the toy aisles. Hasbro recently moved “Stretch Armstrong” from Universal to Relativity Media and believes reinventing the brand will boost revenue when the film bows in 2014, considering Hasbro hadn’t promoted the property with marketing dollars in 20 years, Goldner said.

Hasbro has a similar line of film-based toys set to target boys around the upcoming pics “Battleship,” “The Avengers,” “The Amazing-Spider Man,” “Star Wars: Episode I — The Phantom Menace in 3-D” and “G.I. Joe: Retaliation.”

The boys division, Hasbro’s largest, grew 29% in the fourth quarter and 35% during all of 2011, with pre-school toys up 15%. The girls line was off 16%.

Films, along with TV shows that air on its kids cabler the Hub helped entertainment and licensing revenue climb to $64.1 million from $53.5 million during the quarter.

Toys based on “Transformers” rose 85% in 2011, coming in at the low end of Hasbro’s expectations, given the success of “Transformers: Dark of the Moon,” which earned over $1.1 billion at the box office and popular Hub series “Transformers Prime.”

In the fall, “Littlest Pet Shop” will get a new look with its own Hasbro Studios TV series.

“Similar to how we are successfully reigniting ‘My Little Pony,’ ‘Littlest Pet Shop’ will tell stories, which engage the ‘Littlest Pet Shop’ consumers and carry through our merchandise and retail presence,” Goldner said.

Popular on Variety

More Film

  • Ford v Ferrari

    'Ford v Ferrari' Outmatches 'Charlie's Angels' at International Box Office

    Disney and 20th Century Fox’s “Ford v Ferrari” sped ahead of fellow new release, Sony’s “Charlie’s Angels,” at the international box office. Director James Mangold’s racing drama collected $21.4 million from 41 foreign markets, representing 67% of its overseas rollout. “Ford v Ferrari” also kicked off with $31 million in North America, bringing its global [...]

  • Mindy Kaling Constance Wu

    Mindy Kaling, Constance Wu on Working With Women Directors: 'Nothing Felt Exploitative'

    Constance Wu (“Hustlers”) and Mindy Kaling (“Late Night”) discussed the importance of women directors during a conversation for “Variety Studio: Actors on Actors.” Kaling began the interview by acknowledging how having female directors on “Hustlers” and “Late Night” benefited the films. “[‘Hustlers’ director Lorene Scafaria] doesn’t come from a place of, ‘Oh, let’s humanize this [...]

  • Mindy Kaling Actors on Actors

    Why Mindy Kaling Turned to Social Media to Find the Lead of Her Netflix Series

    Constance Wu (“Hustlers”) and Mindy Kaling (“Late Night”) explained how the internet helped expand the casting pool for their projects during a conversation for “Variety Studio: Actors on Actors.” Wu began the interview: “When I did ‘Crazy Rich Asians’ and they were looking for actors, it was crazy how many people said, ‘Well, there are [...]

  • Christian Bale and Matt Damon in

    Box Office: 'Ford v Ferrari' Races to First Place, 'Charlie's Angels' Collapses

    “Ford v Ferrari” left its box office competitors in the dust as the historical sports drama from Disney and 20th Century Fox sped its way to $31 million in North America. Directed by James Mangold and starring Christian Bale and Matt Damon, “Ford v Ferrari” debuted ahead of expectations, thanks to strong word-of-mouth from moviegoers. [...]

  • In ‘Motherless Brooklyn,’ Edward Norton Takes

    In 'Motherless Brooklyn,' Edward Norton Takes on Timeless Power Struggles

    In Edward Norton’s “Motherless Brooklyn,” the ‘50s-set New York noir detective story he produced, directed, wrote and stars in, politics are never far from the surface. But they’re not the obvious parallels to any racist autocrats from New York of modern times, but instead focus on more timeless politics – the way disabled people and [...]

  • Gods of Mexico

    'Twentieth Century,' 'Dove and the Wolf,' 'Hurricane Season' Win Los Cabos Festival

    LOS CABOS  —  “The Twentieth Century,” Matthew Rankin’s crazed retelling of Canadian history, won the main Los Cabos Competition this Saturday, beating out a prestige lineup of some of the most notable festival standouts of the year. The win at Los Cabos, whose competition is focused on movies from the U.S., Mexico and Canada, adds [...]

More From Our Brands

Access exclusive content