Earlier today, Hasbro released the fourth quarter of 2024 and the full year of the year. As expected, Chris Cocks was full of praise for himself and Hasbro and saw the company go on the right path. He wanted to turn Hasbro into more gaming companies than real toys, and they also wanted to get further into (digital) games, and no surprise, the success of the licensed D&D title Baldur’s Gate 3, as well as the phone How much money does it have to monopolize! Doing it for them. The Rooster even announced a new strategy “Win the Victory!”. One aspect of this new strategy is to attract kids over 13 years old, and of course, Hasbro will think that the impact of smartphones and video games, some toys are getting lower and lower. This is where the entire wizard of the game and the coastal branch should succeed. Yes, wizards grew again throughout the year, while revenue from consumer products (also known as “toys”) dropped sharply by 12% throughout the year.
Revenues for the whole year were down 17% overall, most of which could be attributed to the sale of Eone (Hasbro got rid of their entertainment division), but even without that revenue was down 7%. Total revenue in 2024 was US$4.1 billion and US$5 billion in 2023. However, profitability has improved, operating profit margins are quite good, and Hasbro owns inventory (also known as unsold things in warehouses) has also been greatly reduced.
What did I hear you say? Star Wars? Where is Star Wars? Click to find out…
Year after year…
I’ll ruin it now: There is no mention of Star Wars at one time.
In the PDF presentation, Hasbro has a slide for “Growth Brands” and the miracle is on it. Star Wars is not. This says it all.
During the speech, there was little to say about Hasbro, a partner brand. But they did mention brands in 2024 (and Q4) like Beyblade, Transformers and Marvel.
Partner brand revenue increased a little in the fourth quarter compared to Q4/2023, and perhaps the worst thing behind Hasbro. But Star Wars didn’t promote this growth at all, and we know from previous reports that Star Wars is falling so much that Hasbro picked Star Wars out of their revenue calls several times, which makes By the time sales fell. With the usual excuse.
Here is an updated chart of partner brand revenue:
Click to enlarge
In Q4/Q4 2024, $181 million remains the worst result in Hasbro’s recent history in the second game (at least after the company’s restructuring, the partner brand category figures have been obtained) . In fact, in 2024, Hasbro’s total partner brand revenue was only $583.4 million. Just five years ago, total revenue in 2019 was US$1.22 billion. Declined by more than 52%. In fact, Hasbro’s total revenue was $600 million not long ago. Now only 2/3.
Meanwhile, Mattel’s revenue was $5.38 billion, down 1.13%. Hasbro has been ahead with its long-time U.S. rival for a while, but Mattel is once again the first toy company in the U.S., even so comfortable. However, both LEGO from Denmark and Bandai/Namco from Japan are bigger.
According to the Carriage, the overall toy market in the United States stagnated in 2024, with sales falling by only 0.3%, a similar story for the global toy market, which is also flat and sales only declined. , only down 0.6%. Hasbro’s performance was so to speak, with revenue down 7% (no eone sales, which always impacts revenue).
But while Hasbro, a traditional toy-walking Hasbro is becoming a gaming company, magical parties and all the related games and games (and everything digital) do really well for them. The games that now include MTG now account for about 50% of all the company’s revenue. In 2024, Cocks said how he saw Hasbro become more like a gaming company. Honestly, this may be the only way for the company to move forward. Traditional toys are out, or at least not a factor anymore. Likewise, the MTG/Games division has a great margin, with an operating margin of 41.8% in 2024. As I said before, printing beautiful pictures on cardboard is not expensive. The logistics cost of digital is very low, no transportation is required, and you do not need to pay for the factory. monopoly! I made $112 million alone in 2024 alone.
However, toy sales remained free of falling and adjusted operating margins of 6%. This is bad compared to 41.8% of the gaming segment. But toys have always been a low-profit business. That’s why Cocks moved the company to games and numbers. Revenue for consumer products (aka toys) fell 22% in Europe, 9% in the United States, Latin America fell 22% again, with only Asia growing, but Asia’s revenue compared to other regions Quite low.
Hasbro remains the market leader in the number of people in action, with a total market share of 23.4% throughout the year. However, it dropped by 2 points.
All in all, Hasbro is profitable ($690 million in 2024 operating profit), the company is making money, shareholders receive dividends, and the share price rises after earnings were called up earlier today.
But Star Wars has been losing its doors, and now it all depends on Mandalorian’s films, can it reverse sales of goods in 2026? On Star Wars (Andor) in 2025, no toys will change. And since Andor is the only well-known content this year, that means entertainment won’t offer any support.
I do wonder if Hasbro (or more like Disney) wants to “celebrate” the 10th anniversary of the Force Awakening, but probably not. Yes, it’s been a decade now, and JJ Abrams (and Rian Johnson, don’t forget him) ruined Star Wars after it had ruined Star Trek.
– Hasbro Income Report
– Hasbro Income Introduction (PDF)
There is no earnings call transcript yet, I will add a link and may expand that article immediately after an available article, if there is any claim about Star Wars in Star Wars.
