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Hasbro Delivers Strong Quarter on Rebound in TV Production and Rising Prices

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The Hasbro logo on a toy in New York, November 16, 2021.ANDREW KELLY/Reuters

Hasbro Inc HAS-Q beat analysts’ estimates for quarterly revenue and profit on Monday, supported by a pickup in the toymaker’s television production business and price increases to counter supply chain issues.

Shares of board game maker Monopoly rose 3.3% to $97 in premarket trading.

Revenue for Hasbro’s entertainment business jumped 54% in the fourth quarter ended Dec. 26 as the company delivered new episodes of Showtime series “Yellowjackets” and debuted a new movie “Clifford the Big Red Dog.” .

On the other hand, the results of the previous year were shaken by the production stoppages caused by the pandemic.

The return of Marvel superhero movies last year also buoyed the company’s consumer products unit, with revenue up 9% on demand for toys based on the movies’ characters.

Hasbro, like rival Mattel Inc, is looking to generate more revenue from TV shows, movies and video games as it focuses on becoming a larger entertainment company rather than just a manufacturer. of toys.

The company’s total net revenue rose 17% to $2.01 billion in the fourth quarter, beating analysts’ estimates of $1.87 billion, according to Refinitiv IBES estimates.

On an adjusted basis, the company earned $1.21 per share, beating estimates by 88 cents, as price increases last year helped offset a spike in raw material and transportation costs.

Hasbro, which last month named the head of its digital games division, Chris Cocks, as its next chief executive, said it expects fiscal 2022 revenue to grow at a low rate at a number. Analysts had on average estimated an increase of 3.9%.

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