In the middle of a wide restructure, Hasbro reported US$757.3 million in Q1 revenue this morning, representing a 24% drop compared to last year’s results for the same quarter (US$1 billion) 

CEO Chris Cocks primarily puts the revenue loss down to the ongoing divestiture of its eOne entertainment business and assets. When these elements are excluded from the Q1 financial picture, total revenue for Hasbro’s core business segments only declined by 9%. 

The company’s consumer products segment continued to underperform in Q1, with revenue dropping by 21% to US$413 million. This is attributed to a reduction in closeout sales of last year’s inventory to bargain retailers, as well as a softer market for key categories including action figures, preschool toys and blasters. 

Meanwhile, the eOne sale slammed the entertainment division, which posted an 85% drop in Q1 revenue (from US$185.4 million last year to just US$28 million this year). But without this monkey on its back, the segment’s revenue actually grew by 65%, fueled by new sales for Peppa Pig content. 

The Wizards of the Coast and digital gaming segment is still performing well, achieving 7% growth overall in Q1. It generated US$316 million in quarterly revenue, with Wizards Tabletop game sales up 3% (Magic: The Gathering and Dungeons & Dragons) and licensed digital games sales up 7% (Monopoly Go! and Baldur’s Gate 3).