Magic: The Gathering publisher Wizards of the Coast posted a large year-over revenue gain, according to a fourth quarter investors' report from parent company Hasbro.
In the report, Hasbro states that their Wizards of the Coast and Digital Gaming segment revenue totaled approximately $339 million, which is up 22% year-over-year. Hasbro, meanwhile, shows the company's overall fourth quarter 2022 revenue was approximately $1.68 billion, which down 17% year-over-year; down approximately 14% in constant currency.
"Despite strong growth in Wizards of the Coast and Digital Gaming, Hasbro Pulse, and our licensing business, our Consumer Products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment," said Chris Cocks, Hasbro chief executive officer.
As a result, Hasbro has announced a cost savings goal of $250-300M in annual by year-end 2025. To help achieve this goal, the company announced leadership and organizational changes, including the elimination of approximately 15% of its global workforce this year. The company says they will also be focusing on fewer, bigger brands, as well as its direct-to-consumer and licensing businesses.
"The elimination of these positions will impact many loyal Hasbro employees, and we do not undertake this process lightly. However, the changes are necessary to return our business to a competitive, industry-leading position and to provide the foundation for future success," said Cocks.
"Through this strategy, we are putting the consumer at the center of everything we do, and our Operational Excellence program is on track to drive significant cost savings across the business and improve our overall competitiveness," added Cocks. "These strategic pillars helped to improve our results, particularly operating profit margin and revenue growth in key categories, in a challenging fourth quarter, and lay the groundwork for continued progress in 2023."
Hasbro will webcast its fourth quarter and full-year 2022 earnings conference call on Thursday, February 16, 2023, at 8:30 a.m. Eastern Time. The webcast and the accompanying presentation slides will be available to investors and the media on Hasbro’s Investor Relations home page at https://investor.hasbro.com/. A replay of the call will be available at the same location approximately two hours following completion of the event.
