Hasbro raises annual forecast as Magic powers gaming growth

MUMBAI: Hasbro has drawn a winning card, and this time it came straight from its gaming deck. The toy and gaming giant has raised its full-year revenue and profit forecasts after reporting stronger-than-expected second-quarter results, driven by robust demand for its digital gaming business and the enduring popularity of its flagship Magic: The Gathering franchise.

According to a Reuters report, investors welcomed the results, sending Hasbro’s shares higher after the company posted stronger sales growth and upgraded its outlook for the year.

The company’s Wizards of the Coast and Digital Gaming division recorded 27 per cent year-on-year revenue growth during the quarter, accelerating from 16 per cent growth in the same period last year. Hasbro attributed the performance largely to the continued success of Magic: The Gathering, which remains one of its biggest revenue drivers.

Speaking to Reuters, Chief Executive Officer Chris Cocks said the franchise continues to attract new players while bringing former users back into the fold. Recent releases, including Secrets of Strixhaven and Marvel Super Heroes, helped fuel demand, while a Star Trek-themed expansion is scheduled for November.

Reflecting the momentum, Hasbro now expects full-year revenue to grow between 5 per cent and 7 per cent, compared with its earlier guidance of 3 per cent to 5 per cent. The revised outlook broadly matches analysts’ expectations, although some market observers described the forecast as conservative.

The company also lifted its adjusted annual core profit guidance to between $1.45 billion and $1.50 billion, up from its previous forecast of $1.40 billion to $1.45 billion.

For the quarter ended June, Hasbro reported revenue of $1.14 billion, comfortably ahead of analysts’ estimates of $1.07 billion. Adjusted earnings came in at $1.28 per share, beating market expectations of $1.14 per share.

The company said spending by higher-income consumers remained resilient, helping offset softer demand from lower-income households that continue to face pressure from inflation and weaker discretionary spending.

Hasbro also disclosed that it incurred approximately $11 million in additional costs linked to a cybersecurity incident in March and warned that further expenses related to the breach are expected in the coming quarters.

The latest results underscore how digital gaming has become an increasingly important pillar of Hasbro’s business. While demand for traditional toys remains uneven, premium gaming franchises such as Magic: The Gathering are proving instrumental in driving revenue, improving profitability and reinforcing investor confidence as the company continues its transition towards a more digitally focused entertainment business.