Shares are down about 5.5% in pre-market trading after the company behind Transformers and cable’s The Hub kids’ channel reported soft results for the last three months of 2011. Hasbro generated net earnings of $139.1M, down 6.3% vs the period last year, on revenues of $1.33B, up about 4%. Analysts expected revenues to come in slightly higher, at $1.34B. Earnings, at $1.06 a share, were a penny ahead of forecasts. Hasbro’s entertainment and licensing unit more than held its own: Its operating profit grew 44% to $21.5M on revenues of $64.1M, up 20%. The company says the operation thrived from sales of TV shows overseas, as well as from movie and merchandise revenues from Transformers: Dark Of The Moon. But that didn’t seem to help the games and puzzles category where revenues fell 11% to $370.6M. “Despite the challenges we encountered in 2011, we grew our business, effectively managed our capital structure and maintained a healthy balance sheet,” CEO Brian Goldner says.

They should really be making more movies. Movies sell toys – it’s pretty cut & dry, right? Box office earns major income as well. Not sure why they’re only averaging one film per year if they’re in the entertainment business. They should be making two–three films per year in different genres. Especially films aimed at kids. Kids buy more toys than the target audience for Battleship…
I haven’t seen much of the HUB network. Is it as profitable for Hasbro as the films?
I’m looking forward to Candy Land. That seems like a winner for them.
Hasbro should be making Direct-to-DVD films as well. Spin-offs from their existing titles and new titles. Every Direct-to-DVD studio in this town wants content based on toy products, and these DVDs can sell like gangbusters inside of Target, Walmart, toy stores, etc. Hasbro really should be diversifying their business so their earnings aren’t based on a handful of entertainment products per year.
Mattel has definitely cornered the market on kids DVD’s based on toys.. Hasbro must be working on their own franchises too. They are clearly a smart company – don’t think they’d let go of that market share.