Hasbro continues to face challenging times at market, even as it cuts away the more unprofitable segments of its core business. The toyco reported today that its full-year revenue for 2023 declined by 15% to US$5 billion, compared to US$5.86 billion in 2022. 

Entertainment was hit the hardest, with the segment generating 31% less revenue than it did in 2022 (US$659 million versus US$828.7 million). According to the report, this was driven by an annual operating loss of US$1.9 billion associated with selling the eOne Film and TV business to Lionsgate. 

Meanwhile, consumer products revenue was down 19% in 2023 (US$2.88 billion) as Hasbro focused on dumping unprofitable licenses and eliminating 50% of its duplicative SKUs. The company’s unsold inventory now totals US$332 million, which is 51% less than the US$677 million it was carrying at the end of 2022. And in other more positive news, Transformers/G.I. Joe action figures and accessories and the newly relaunched Furby range (pictured) turned in solid holiday performances at retail. 

The only Hasbro business that grew in 2023 was Wizards of the Coast and Digital Gaming, which was up by 10% in annual revenue year over year (US$1.45 billion versus US$1.32 billion). Strong sales for licensed games Baldur’s Gate III (Larian Studios) and Monopoly Go! (Scopely) contributed to this result, along with iconic TCG Magic: The Gathering achieving 2% growth. And Dungeons & Dragons, which is in the midst of a massive sales boom, generated 76% more revenue last year than in 2022. 

Looking ahead to the rest of 2024, Hasbro expects revenues to continue sliding as it restructures its business. Consumer products revenue is expected to drop by as much as 12% this year as the company gets out of unprofitable markets and shifts to an out-licensing model for its toy and entertainment brands. The Wizards and Digital Gaming segment’s bubble is also expected to burst in the second half of the year, with a 5% revenue drop due to a lack of new gaming titles slated for release in 2024 in the forecast. To help offset these dynamics, Hasbro has increased its mid-term gross savings target from US$400 million to US$750 million by the end of 2025.