Giant toymaker Hasbro, parent of eOne, missed revenue forecasts as supply chains, sales and entertainment production were disrupted by COVID-19 last quarter, but its CEO said he believes “the outlook improves from here.”
Chief executive Brian Goldner particularly noted that the Pawtucked, R.I.-based company expects to see the benefit of synergies from the acquisition of eOne and remains “on track to deliver against our plan of $130 million in synergies by year-end 2022.”
Overall, “We have a strong entertainment lineup for 2021, through internally developed as well as third-party entertainment,” Goldman noted.
Hasbro completed its $4 billion acquisition of Canadian studio Entertainment One – whose properties include Peppa Pig and PJ Masks — last December.
The company noted that gaming was the one bright spot for the three months ended in June as the global pandemic slammed other businsses. The company earned $0.02 a share on sales of $830 million, down 12.6% from the year before and more than $100 million shy of analysts’ forecasts.
“The second quarter was much as we expected: strong point of sale for Hasbro brands countered by a very challenging revenue period due to global closures in our supply chain, across retailers as well as in entertainment production,” said Goldner. “We believe the outlook improves from here. Consumers – children, families, fans and audiences – are relying on Hasbro brands and stories to connect and entertain themselves throughout this period.”
“While the full-year COVID-19 impact geographically remains unpredictable, as stores reopen and we begin to return to production for entertainment we expect the environment to improve in the third quarter and set us up to execute a good holiday season,” he added.
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