Hasbro's Q4 2024: Contradictions in Monopoly GO!, MAGIC Set Timing, and Consumer Products Performance

These are the key contradictions discussed in Hasbro's latest 2024Q4 earnings call, specifically including: Monopoly GO! revenue expectations, MAGIC set timing, Consumer Products (CP) top line performance and margin expectations, and strategic outlook for MAGIC Arena.



Revenue Trends and Growth Drivers:
- Hasbro reported revenues of $1.1 billion for Q4, down 3% excluding the E1 divestiture, and $4.1 billion for the full year, down 7%. The Wizards segment revenues declined 7%.
- Growth was driven by the success of MONOPOLY GO! contributing $38 million of revenue and the strong performance of MAGIC.

Operating Margin and Cost Savings:
- Hasbro's adjusted operating margin improved to 10.2% for Q4, reflecting a 14-point improvement year-on-year.
- This improvement was due to favorable business mix, supply chain productivity, and achieving a net cost savings of $227 million.

Digital Gaming and Strategic Focus:
- The Wizards and Digital Games segment had a record operating margin of 41.8%, a nearly 6-point improvement over the previous year.
- The strategic focus on digital gaming and partnerships contributed to this growth, with a significant investment in video game development and collaborations with external partners.

Consumer Product Challenges and Growth:
- Consumer Products revenue decreased by 1%, with exited brands and reduced closeout volume being significant factors.
- Growth in brands like Beyblade, Furby, and My Little Pony was observed, indicating strategic improvements in the product portfolio and marketing effectiveness.