Hasbro proves it doesn’t need cinemas to sell Star Wars toys.
While the Rhode Island toy company saw sales of its partner brands, licensed content from entertainment studios, fell 12% to $ 1.08 billion for the full year, its Star Wars sales increased by 70% in 2020.
Last year marked for the first time since 2014 that Disney did not release a Star Wars movie in theaters, but Grogu, the child formerly known as Baby Yoda; luxury collections and light toy swords fueled the growth of the toy franchise.
Cinemas have been deprived of quality Hollywood content due to the ongoing pandemic, but Disney + is making up for this loss with shows like “The Mandalorian.”
“What was great about our business is that streaming content is now enjoyed by so many people that it has really hit a tipping point,” CEO Brian Goldner told CNBC’s “Squawk on the Street.” months. “And this point of doubt means that you have tens of millions of people watching a piece of content in a certain period of time, which allows us to stand out.”
Earlier Monday, Hasbro said its fourth-quarter earnings fell to $ 105.2 million, or 76 cents a share, from $ 267.3, or $ 2.01 a share, a year ago. year. But after excluding the items, Hasbro earned $ 1.27 per share, which was better than expected at $ 1.14 per share.
Revenue rose 21 percent to $ 1.72 billion and exceeded expectations by $ 1.69 billion, helped by strong sales of games such as Jenga, Scrabble and Dungeons & Dragons.
Hasbro shares initially rose on the news, but shares recently fell about 3% at noon as investors were worried about the company’s investment in new video and advertising content.
Keeping Grogu in stock
The company also faces higher costs due to supply problems, which included delays due to port congestion. Hasbro has had trouble keeping items in stock, including those with Grogu.
When the character was introduced in 2019, Hasbro could not take full advantage of its popularity. Showrunners Jon Favreau and Dave Filoni were so eager not to ruin his appearance in “The Mandalorian” that they did not share any reference photos with the toy manufacturers.
Hasbro, along with other toy and retail manufacturers, has had to fight to meet consumer demand for goods with the little green alien. For the second season, which was launched at the end of 2020, Hasbro has managed to tease new products and include Grogu goods in its holiday launches.
Showcase New York Toy Fair products: “The Mandalorian” and “Star Wars The Clone Wars” at the Dream Hotel on February 20, 2020 in New York City.
Craig Barritt | Getty Images Entertainment | Getty Images
And Disney + has more than “Mandalorian.” In the next few years, the streaming service will debut at least nine Star Wars shows. These include series with popular characters such as Ahsoka Tano, Lando Calrissian, Obi-Wan Kenobi and Boba Fett.
These shows will keep Star Wars fans and Hasbro toy makers busy until 2023, when Patty Jenkin’s “Rogue Squadron” will hit theaters.
Outside of the Star Wars universe, Disney + also has nearly a dozen Marvel series in the works. Already, “WandaVision” is broadcasting on the service, and “Winter Falcon and Soldier” and “Loki” will be released before the middle of the year.
“We see rapid subscription growth, Disney + globalization, and access to Disney content for new audiences as a key catalyst for consumer demand,” said Stephanie Wissink, CEO of Jefferies. “Hasbro is one of Disney’s biggest strategic partners in enabling fans of all ages to engage in brands in the form of physical goods.”
When theaters reopen
Hasbro expanded its Star Wars and Marvel partnerships with Disney in early 2020. It is unclear how long this new contract is set, but the last time the toy manufacturer renegotiated its master toy licenses for those franchises was in 2013.
Hasbro has long benefited from its relationship with Disney. In 2019, Hasbro’s partner brand revenue increased 24% to $ 1.22 billion. The company reported strong sales of “Frozen 2”, “Avengers”, “Spider-Man” and “Star Wars” lines for growth.
The toy company’s licensed content is likely to return in 2021, as coronavirus vaccines will be launched for more Americans, and moviegoers may return to cinemas in larger groups. But Hasbro did not provide a specific earnings forecast.
Disney’s Marvel Studios has four films released this year: “Black Widow”, “Shang-Chi and the Legend of the Ten Rings”, “Eternals” and a third film “Spider-Man” made in partnership with Sony.
“Plans to have approximately 5 TV shows for Marvel content on Disney + this year combined with expected movie releases create a year-round programming opportunity for Hasbro, with a rotating range of product offerings,” said Eric Handler. , general manager of media and entertainment research at MKM Partners.