Form 10-Q: Quarterly Report for the Period Ended July 2, 2023

Key insights

7 takeaways · ~3 min read

01
Hasbro, Inc. reported a net loss attributable to the company of $235.0 million for the quarter ended July 2, 2023, a significant decline from net earnings of $142.0 million in the same period of 2022.
02
The company recorded a goodwill impairment charge of $231.2 million and intangible asset impairment charges of $48.7 million related to the eOne Trademark within the Entertainment segment during the quarter.
03
Wizards of the Coast and Digital Gaming segment net revenues decreased by 11% to $375.6 million in Q2 2023, down from $419.8 million in Q2 2022, primarily due to lower tabletop gaming sales, especially MAGIC: THE GATHERING, driven by the timing of set releases.
04
Digital gaming net revenues partially offset the decline in the Wizards of the Coast segment, boosted by a full quarter of D&D Beyond revenue in 2023 and higher Magic: The Gathering Arena revenues.
05
Hasbro is selling its eOne film and TV business (excluding Family Brands like PEPPA PIG and PJ MASKS) to Lionsgate for approximately $500 million, with the transaction expected to close before the end of fiscal 2023.
06
The company's total costs and expenses increased to $1,398.6 million in Q2 2023 from $1,120.1 million in Q2 2022, largely due to the impairment of goodwill.
07
Unrecognized revenue from unsatisfied performance obligations, primarily for in-production television content, totaled $158.6 million as of July 2, 2023, with $135.3 million expected to be recognized in the remainder of 2023.