NEW YORK—Hasbro Inc.’s decision to stick by Monopoly and other traditional games — a daring move in an increasingly digital world — is paying off after a robust holiday season boosted the shares the most in 16 years.
They toymaker bucked lacklustre results at Toys “R” Us Inc. and Mattel Inc., thanks in large part to games such as Pie Face and Magic: The Gathering. The unit increased sales 11 per cent to $518.7 million (U.S.) in the fourth quarter, the company said on Monday. That, along with its first Christmas season with the primary Disney Princess and Frozen license, helped the company top analysts’ estimates for profit and sales.
“Hasbro’s gaming portfolio is unparalleled,” chief executive officer Brian Goldner said on a call with analysts. “It addresses broader demographics and play experiences better than any other company.”
Revenue rose 11 per cent to $1.63 billion, beating analysts’ $1.5 billion average projection, Hasbro’s second straight strong performance. Profit was $1.64 a share, excluding some items, according to the Pawtucket, R.I.-based company. Analysts projected $1.28, on average.
When computer tablets went mainstream earlier this decade, sales of traditional games suffered as consumers spent more time on mobile devices. That trend has since waned as adults and kids have returned to in-person experiences. Last year, industrywide sales of games in the U.S. rose 21 per cent to $307 million, according to NPD Group.
Hasbro gained share in major markets including the U.S., the U.K., China, Brazil and Russia, Goldner said. The toymaker saw strong demand across the world, especially in the U.S., he said. That countered Mattel, which said sales significantly slowed down in the first three weeks of December.
The company also increased its quarterly dividend 12 per cent to 57 cents a share. That marked the eighth straight year it boosted the payout.
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