Oct 20 (Reuters) – Hasbro raised its annual revenue forecast on Tuesday, betting on strong demand for digital games, including its flagship trading card game called “Magic: The Gathering”, ahead of the crucial holiday season.
The Play-Doh maker has posted gains in its digital gaming segment, which also includes Monopoly Go!, over the past seven quarters, while an increase in sales of collectibles linked to Marvel, K-Pop Demon Hunters and Transformers have boosted demand for traditional toys.
Its Wizards of the Coast and Digital Gaming segment, which contributed 51% to the company’s fiscal 2025 revenue, grew 31% during the third quarter. Revenue from the consumer products segment rose 4% over the year earlier.
Hasbro expects fiscal 2026 revenue to grow in the range of 7% to 9% on constant currency basis, compared with its prior forecast a 5% to 7% rise.
The company has benefited from its investments in digital gaming, product innovation in key franchises and strategic partnerships, while rival Mattel has come under investor pressure to better monetize its intellectual property following the surprise departure of its longtime CEO Ynon Kreiz.
Shares of Hasbro were up about 1% in premarket trading. For the year so far, they have outperformed Mattel’s.
Hasbro’s investment strategy “is paying off”, eMarketer analyst Zak Stambor said, adding that the company is in a good position heading into the holidays.
Quarterly revenue from Hasbro’s gaming franchise “Magic: The Gathering” topped $600 million for the first time, up 34% from a year earlier. It has also benefited from new launches such as “Secrets of Strixhaven” and “Marvel Super Heroes”.
Quarterly revenue of Hasbro, which also said it has doubled its share repurchase target, stood at $1.60 billion, compared with analysts’ average estimate of $1.48 billion, according to data compiled by LSEG.
Adjusted profit per share of $2.90 also beat the estimate of $1.86. The company’s results included about $55 million of tariff refunds.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi Majumdar)
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