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Hasbro Says Transformers is one of the Brightest Spots for Growth / Sales in their Entire Toy Portfolio

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In the back half of 2023, we started to see the first evidence of our new team and products working. Take FURBY, for example. This was a product we took our time testing and iterating based on consumer insights. It paid off as FURBY was one of the top new toy introductions in 2023. We continued the FURBY craze in December with the launch of Furblets, another hit introduction, and we’re excited to continue building this franchise in 2024. 2023 was also a strong year for our TRANSFORMERS franchise. On the back of the hit movie, Transformers Rise of the Beasts from our partners in Paramount, driving point of sale growth of 35%. We have some exciting activations planned as we celebrate the brand’s 40th anniversary in 2024, as well as the star-studded animated movie, Transformers One, coming this summer along with fresh merchandise.

As far as our financial participation goes for revenue and profit, it’s like having the equivalent of $1 billion movie supporting Monopoly, except every year, with the impact growing sequentially as the game works through our minimum guarantees and marketing allowances. Baldur’s Gate III from our partners of Larian continues to win awards around the world and is one of the highest rated video games of all time. We expect a long tail into 2024 and beyond for this mega hit. Last but not least, we have a compelling new lineup of adventures, core rulebooks, and new digital first offerings for D&D as we celebrate this iconic brand’s 50th anniversary. We’ll launch the biggest update to fifth edition since its introduction in 2014, reinventing everything from the artwork of our iconic monsters, to new classes, to new mechanics, to bold new ways to bring to life the world of D &D digitally.

All of this will add up to more and more impressive product as the year goes on, leading into an even brighter 2025. We look forward to sharing more about 2025. All new brands, entertainment collaborations, and a chance to really show what this team is capable of later this year. Wrapping up, 2023 was a challenging year, but not without significant wins. Wins we believe augur the Hasbro to come. A company rededicated to play, innovation, and fun for fans of all ages. Last year, we launched a top toy with FURBY. We won a Game of the Year award with Twister Air. And we wowed tens of millions with Monopoly Go! Transformers Rise of the Beast, Baldur’s Gate III, and Magic Lord of the Rings, all while cleaning up the business, selling eOne, paying down debt, and clearing excess inventory, which makes for a healthier, stronger Hasbro to start 2024.

Adjusting for the exit of brands and markets, revenue would have declined by 15%. And despite the tougher category backdrop, we delivered some bright spots within our toy portfolio, including Transformers, Twister Air, Furby, and GI Joe. On a reported basis, the Entertainment segment revenue declined by 31% as the writers’ and actors’ strikes impacted content deliveries. Family Brands revenue grew 6% from streaming deals of animated content in support of Hasbro’s brands. Total Hasbro Inc. 2023 adjusted operating profit was $477 million, down 48% versus last year, primarily driven by the nonrecurring expenses, as well as lower revenues. 2023 adjusted net earnings of $349 million, or $2.51 per diluted share, was down 44% versus last year. Besides the charges for inventory, earnings were negatively impacted by content impairments and higher royalty expense, partially offset by our cost savings program and a one-time tax benefit.