Toy giant Hasbro reported on Monday monetary effects in the second quarter that failed to reach Wall Street profit and profit forecasts, as the new coronavirus pandemic caused production delays, affecting its Entertainment One film and television department and movie release delays due to movie closures.
Hasbro reported a quarterly loss of $33.9 million, or 25 cents according to the stock, to a profit of $13.4 million, or 11 cents according to the stock, in the same period of 2019. Non-recurring acquisition expenses were eliminated, adding severance and amortization, on eOne, Hasbro reported adjusted earnings of $2.7 million, or 2 cents consistent with diluted shares.
Analysts had forecast a 23 cent cash benefit for Hasbro for $992 million, according to IBES’ knowledge of Refinitiv. Hasbro’s second quarter cash fell nearly 13% to $860.3 million from last year’s figure of $984.5 million.
“The quarter of the moment lived up to our expectations: a solid selling point for Hasbro’s brands offset a very complicated profit era due to chain closures from global sources, in stores and in entertainment production,” said Brian Goldner, President of Hasbro and CEO.
At eOne, production and movie theater closures caused by the spread of coronavirus resulted in a 32% drop in pro forma revenue to $132.2 million. Television and movie revenues reached $106 million in the last quarter, to $160 million in last year’s quarter, while music revenue fell to $26 million from $30 million.
Hasbro reported that the number of outlook and eOne content order increased last quarter. But the studio’s release schedule was postponed until the end of 2020 and 2021, with production of real-world action in the area of television and films closed.
eOne has begun to resume production of scripted and und-scripted series in Canada and the UK, and the company expects production to resume in the US market later this year. Hasbro’s executives, in a morning call from analysts, said that investing money in eOne content in 2020 would be reduced from about $200 million to a diversity of $450 million to $550 million, due to the effect of production shutdowns on the coronavirus era and production time as production progresses. go back on the track.
The cinema closures around the COVID-19 locks have also changed the release dates of The Hasbro films in 2021. Goldner told analysts that a new G.I. The film Joe in preparation with Paramount now points to a movie premiere next year after first contemplating an October 2020 deployment delayed through the pandemic.
“We’re working on the main points with Paramount,” Goldner told analysts. Lorenzo di Bonaventura, who produced Snake Eyes: G.I. Joe Origins and also produces projects based on Hasbro’s Transformers brand, relaunching the franchise with Hasbro’s arm, Allspark Pictures.
Despite the pandemic, animation production on eOne remained active, especially for Peppa Pig, PJ Masks and the 2021 animated film My Little Pony. eOne has about one hundred TV projects in progress and 40 other movie projects in its portfolio, adding projects around more than 32 Hasbro properties, adding Dungeons and Dragons.
July 27, 6:30 a.m. Updated with comments from Hasbro executives, call from an analyst.
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