Hasbro beats on strong demand for digital gaming (HAS)
REUTERS/Lucas Jackson
(Reuters) - Hasbro Inc, the no. 2 U.S. toymaker, reported a better-than-expected quarterly profit, partly helped by demand for digital gaming which more than doubled the profit from its entertainment and licensing business.
Hasbro's sales have been on the rise, especially after the toymaker won a lucrative contract from Mattel Inc for dolls based on Walt Disney Co's princesses such as Cinderella and Frozen's Elsa in 2014.
The company said its revenue rose 2.2 percent to $849.7 million in the first quarter ended April 2, helped by higher demand for toys based on franchises such as "Nerf" and "Transformers".
Revenue for the company's franchise brands, which also include Monopoly and Play-Doh, rose 1.7 percent to $423.6 million. The business accounted for about half of Hasbro's total revenue.
Net income attributable to Hasbro rose to $68.6 million, or 54 cents per share, from $48.8 million, or 38 cents per share, a year earlier.
Hasbro earned 43 cents per share, excluding an 11 cent benefit due to the adoption of a new accounting standard.
Analysts on average had expected a profit of 38 cents per share and revenue of $822.1 million, according to Thomson Reuters I/B/E/S. (Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Shounak Dasgupta)
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