Game growth, movie tie-ins help Hasbro to record revenue

Toymaker Hasbro reports 14.2 percent rise in quarterly revenue

Updated: Today 7:23 am- Published: Today 6:42 am Toymaker Hasbro reports 14.2 percent rise in quarterly revenue Reuters Reuters

Shares of Hasbro (HAS) were rising in pre-market trading on Monday after the company posted better-than-anticipated results for the 2016 third quarter.

The Rhode Island-based company's revenue rose 14.2% to $1.68 billion, easily beating the average analyst estimate of $1.56 billion.

"Innovative play experiences, engaging storytelling and global execution of Hasbro's Brand Blueprint continues to drive consumer and retailer demand for our brand portfolio", Brian Goldner, Hasbro's chairman, president and CEO, said in a statement.

The company, which now stands as the second largest toymaker in the country, said that revenue from the high-growth girls' toys category increased 57 percent to $462 million - thanks to high demand for Disney Princess, Frozen and Dreamworks' Trolls-themed doll products. The year-ago period had seen boys category revenue rise 24 percent amid the retail launch of Star Wars: The Force Awakens product. That exceeded Wall Street consensus expectations.

Hasbro shares rose $2.09 (+2.74%) to $78.25 in premarket trading Monday. Analysts were looking for revenues of $1.56 billion for the quarter. The stock has increased more than 20 percent since the beginning of the year.

Last year's successful Star Wars film, "The Force Awakens", drove Hasbro's toy sales up to almost $500 million - especially the K-2SO droid robot.

Boys category revenues increased 2 percent, Games category revenues grew 13 percent and Girls category revenues surged 57 percent.

With less than 70 days until Christmas and the shopping season around the corner, the toymaker maintained its recent momentum, reporting net income for the quarter of $257.8 million, topping last year's $207.6 million for the same period. Just in the third quarter, Hasbro's shareholders were paid a total of $64 million in cash and dividends.

"Throughout 2016 the Hasbro team has delivered strong financial performance, in terms of revenues and earnings growth, supported by a solid balance sheet enabling our business growth", said Deborah Thomas, Hasbro's Chief Financial Officer.

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