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Hasbro trims revenue forecast due to upcoming Hollywood strike.

Hasbro trims revenue forecast due to upcoming Hollywood strike.

Hasbro Lowers Full-Year Revenue Forecast

The Hasbro, Inc. logo is seen on the Star Wars Galactic Snackin Grogu toy in the FAO Schwarz toy store in Manhattan, New York City

The Hasbro, Inc. logo is seen on the Star Wars Galactic Snackin Grogu toy in the FAO Schwarz toy store in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly/File photo

Hasbro Beats Revenue Estimates in Q2

Aug 3 (Reuters) – Hasbro (HAS.O) lowered its full-year revenue forecast on Thursday as its entertainment segment, which includes eOne film and TV studio, is expected to take a hit from the ongoing strike by writers and actors.

The toymaker, however, beat second-quarter revenue estimates, sending its shares up 2.5% in premarket trading.

Hasbro also lowered its growth target for adjusted operating margin to between 20 basis points (bps) and 50 bps, from 50 bps to 70 bps rise forecast earlier.

The company said its margins at its entertainment segment are expected to decline due to industry strikes as well as a $25 million “Dungeons & Dragons: Honor Among Thieves” production asset impairment charge.

Thousands of Hollywood actors voted to strike in July, after talks with studios broke down, joining film and television writers who have been on picket lines since May and deepening the disruption of scores of shows and movies.

The company forecast fiscal 2023 revenue to decline 3% to 6%, compared with its previous outlook of a low-single-digit fall, as entertainment segment revenue is expected to drop between 25% and 30%.

The Monopoly maker’s net revenue fell 10% to $1.21 billion in the quarter ended July 2, compared with analysts’ average estimate of $1.12 billion, according to Refinitiv IBES data.

Separately, the toymaker said it would sell its eOne film and TV studio to Lionsgate Entertainment for about $500 million as part of its efforts to focus on more profitable brands.

Hasbro’s Entertainment Segment Margins Expected to Decline

The company said its margins at its entertainment segment are expected to decline due to industry strikes as well as a $25 million “Dungeons & Dragons: Honor Among Thieves” production asset impairment charge.

Threat of Industry Strikes Impact Hasbro’s Forecast

Source

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