Hasbro has reported its results for the second quarter of 2010, with net earnings up 11 per cent compared to the same period in 2009, but net revenue down by seven per cent.
The toy giant reported net earnings of $43.6 million (2009: $39.3 million), net revenues of $737.8 million (2009: $792.2 million) and operating profit of $79.7 million, up nine per cent from 2009.
In Entertainment & Licensing, segment net revenues were $30.5 million, up 26 per cent on the $24.2 million reported in 2009. The results primarily reflect an increase in movie-related revenue. Operating profit, meanwhile, was $13 million (2009: $2.9 million).
Worldwide net revenues for major product categories grew in two of the four areas: Games & Puzzles was up 22 per cent ($262.2m)l; Pre-school grew 32 per cent ($103.5m); Girls was flat ($133.2m); and Boys decreased 34 per cent ($238.8m).
"We are executing our long-term strategy by re-imagining, re-inventing and re-igniting our global brand portfolio, which in turn is improving profitability in our business," said Brian Goldner, president and CEO at Hasbro. "As we stated previously, the second quarter presented challenging revenue comparisons due to the initial movie product ship-ins last year ahead of the Transformers and GI Joe movies.
"Having said this, the strength of our brand portfolio and the execution of the team globally enabled us to partially offset this challenging revenue comparison and improve our profitability year over year.
"We continue to expect our revenues to be more heavily weighted to the second half of the year as our major initiatives are beginning to launch."