HAS - Hasbro gains after earnings deal to sell film and TV business
2023-08-03 07:20:15 ET
Hasbro ( NASDAQ: HAS ) pushed higher in early trading on Thursday after reporting Q2 results .
Revenue fell 9.7% during the quarter to $1.21B, but came in ahead of the consensus estimate. Revenue was down 11% for the Consumer Products and Wizards of the Coast segment, driven by business exits and a continued focus on inventory reduction; partially offset by growth of 18% in Consumer Products Licensing behind concerted efforts to leverage IP across new partnerships. Revenue was also down in the Wizards of the Coast and Digital Gaming segment, driven by tabletop revenue which, as expected, was impacted by one fewer Magic: The Gathering set release in Q2 compared to a year ago. The Entertainment segment saw a 3% decline in revenue, driven by exited businesses partially offset by growth across scripted TV and Family Brands.
Hasbro ( HAS ) reported adjusted EBITDA of $198.6M to miss the consensus estimate of $205.6M
Hasbro ( HAS ) continues to target a Debt-to-EBITDA ratio of 2.0X to 2.5X. For 2023, progress is expected against this target. Pending the outcome of the sale of the eOne Film and TV business, Hasbro ( HAS ) anticipates prioritizing the sale proceeds toward paying down debt. Hasbro ( HAS ) also said it remains committed to maintaining its investment grade rating.
Shares of Hasbro gained 2.55% in premarket trading on Thursday to $66.00. In addition to earnings, investors were reacting to the announcement by the toy company that it will sell its eOne Film and TV business to Lionsgate.
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Hasbro gains after earnings, deal to sell film and TV business