Wizards of the Coast and Digital Gaming sales were up 40% to $423.6 million from $303.5 million in the year ago quarter, driven not only by big increases in Magic sales, but also by $63 million in incremental revenue from the launch of licensed video games Baldur’s Gate III and Monopoly Go!.
Tabletop game revenue in the Wizards of the Coast and Digital Gaming segments were up 18% to $290.5 million from $246.3 million in 2022, primarily behind the increases in Magic sales; Wilds of Eldraine, Commander Masters, and the Universes Beyond set The Lord of the Rings: Tales of Middle-earth were cited as major contributors.
Hasbro Total Gaming sales, which include sales of Hasbro brands from its Consumer Products segment as well as WotC titles, were up 23%, from $508.6 million to $628.0 million in the quarter.
Sales in Hasbro’s other two segments were down in the quarter. Sales in the Consumer Products segment, which includes toys and board games, were down 18% to $956.9 million from $1,160.8 million in Q3 2022, which Hasbro attributed to exited licenses, softer category trends, and prioritization of inventory management across both owned and retail inventory (i.e., stores are stocking less, and Hasbro is cutting inventory too).
Entertainment sales were down 42% to $122.9 million from $211.6 million, which Hasbro said was due to the writers and actors strikes. Hasbro plans to close on the sale of its eOne entertainment division to Lionsgate by the end of the year (see “Hasbro Sells eOne”).
Habro lost $171.1 million in the quarter, pulled down by a $473.0 million no-cash charge related to its loss on the sale of eOne assets. That compares to a $129.2 million profit in the year-ago quarter. The Wizards of the Coast and Digital Gaming segment contributed $203.4 million in operating profit, up from $102.2 million in Q3 2023.
Hasbro has been having a tough year on its bottom line; it lost $188.6 million in Q2 (see “WotC and Digital Gaming Down in Q2”).
Hasbro maintained its guidance for high single-digit sales growth in Wizards of the Coast and Digital Gaming for 2023, but cut its guidance for Consumer Products, which it expects to decline in the mid- to high teens. Traders punished the stock in response; it was down over 10% by the end of the day.
