This week in the NY Times: Hasbro Earnings, Online Music, and Tesla

[tomBitonti]

Keep an eye out: There will be articles this week (week of 09-Feb-2015) in the New York Times re:

• Hasbro Earnings
• Online Music Case
• Tesla's Numbers

Among others.

There are short preview blurbs on page B2 in Monday's paper.

The Hasbro summary remarked on extra attention in the industry because of a recent management shake-up at Mattel, which has struggled with technology and consumer appetites, and which has had "gloomy" earnings. Hasbro's earnings have been "roughly flat". I don't expect hardly any, if any at all, attention to D&D. The summary mentions "Get Up and GoGo My Walkin' Pup Pet" (take that My Lucky Pony) and "Transformers action figures".

There were eleven summaries / previews. I picked out those three because of local interest, and because of my own interest.

The online music case is between Pandora Media and licensing agency BMI.

The issue with Tesla is whether they were able to make their production numbers -- a target of 33,000 cars last year -- and about troubles in China and when the company will be profitable.

Thx!

TomB

Edit: Fixed "Hasbro" in the title.

 

[tuxgeo]

Could you edit the title? You've called them "Hashbro." (Even the creaky NYT wouldn't print that, would they?)

 

[tomBitonti]

Toys, toys, toys. No mention of D&D. Does anyone have a revenue number, even approximate, for D&D? That would help place it in the 4.28 billion (10^9) $ US net revenue for 2014.

See: http://www.nytimes.com/2015/02/10/b...bolstered-by-strong-toy-sales.html?ref=topics

"My Little Pony and Transformers Toys Help Lift Hasbro Sales, and Its Profit Jumps"

"The company said on Monday that its adjusted net earnings in the fourth quarter rose to $154.9 million, or $1.22 a share, up from $148.8 million, or $1.12 a share, in the same period last year. The company’s shares closed up more than 7 percent on Monday, at $59.66."

"While Hasbro’s revenue grew 5 percent to $4.28 billion in 2014, it would have grown 7 percent if not for changes in foreign exchange rates.

Net revenue increased 1 percent to $1.3 billion in the fourth quarter, but would also have risen 7 percent, excluding a $75.4 million negative impact from currency fluctuations.

Adjusted net earnings rose 10 percent to $408.7 million, or $3.15 earnings a share, in 2014."

Thx!

TomB

 

[tomBitonti]

Some things I'm noticing re: Hasbro:

• They get a lot of their revenue from licensing
• More specifically, from big entertainment: Star Wars, Disney, Transformers
• D&D, while a brand, is not of the same type as Star Wars or Transformers, and doesn't work as well as these for bringing in revenue.

Then, what is different about D&D as a brand and why doesn't it work?

I am thinking that it is much too non-specific. Conversely, what would work would be something much more specific: A concrete world and concrete characters. A detailed world and well drawn characters. Say, Drizzit and the Underdark. Or, the two empires and the Rain of Colorless Fire and the Invoked Devastation, in Grayhawk. Or, a story which spans one of the realms and reaches Penumbra. Or, a story set in Sigil.

What I look at for comparison are the Lord of the Ring and Hobbit movies, and the ongoing Fire and Ice series.

Some alterations would likely be necessary to give the worlds a more solid grounding: The presence of magic would need to be made "real" in terms of how the world is designed. (Not fully detailed, but solid enough to not make the stories entirely silly.) Races like the Drow would need to be made workable as being a sustainable race. As depicted, because of their homicidal tendencies, they seem to be on a fast track to extinction.

Thx!

TomB

 

[delericho]

I am thinking that it is much too non-specific. Conversely, what would work would be something much more specific: A concrete world and concrete characters. A detailed world and well drawn characters. Say, Drizzit and the Underdark. Or, the two empires and the Rain of Colorless Fire and the Invoked Devastation, in Grayhawk. Or, a story which spans one of the realms and reaches Penumbra. Or, a story set in Sigil.

The key problem with that is that in a D&D game players provide their own protagonists. This means that most of those well drawn characters have to come from the tie-in fiction, which is a peripheral element of an already niche hobby.

There are some aspects where WotC can (indeed, are) trying to improve this: their current focus on 'storylines' seems aimed at doing much of what you suggest. But, even so, Tyranny of Dragons (or similar) could adapt to a video game or similar reasonably well, but adapting it for a film would be difficult because, again, of the lack of in-built protagonists.

 

[Kramodlog]

Toys, toys, toys. No mention of D&D. Does anyone have a revenue number, even approximate, for D&D? That would help place it in the 4.28 billion (10^9) $ US net revenue for 2014.

See: http://www.nytimes.com/2015/02/10/b...bolstered-by-strong-toy-sales.html?ref=topics

"My Little Pony and Transformers Toys Help Lift Hasbro Sales, and Its Profit Jumps"

"The company said on Monday that its adjusted net earnings in the fourth quarter rose to $154.9 million, or $1.22 a share, up from $148.8 million, or $1.12 a share, in the same period last year. The company’s shares closed up more than 7 percent on Monday, at $59.66."

"While Hasbro’s revenue grew 5 percent to $4.28 billion in 2014, it would have grown 7 percent if not for changes in foreign exchange rates.

Net revenue increased 1 percent to $1.3 billion in the fourth quarter, but would also have risen 7 percent, excluding a $75.4 million negative impact from currency fluctuations.

Adjusted net earnings rose 10 percent to $408.7 million, or $3.15 earnings a share, in 2014."

Thx!

TomB

From the previous info we got that did mention D&D, it said that net revenues increased in part thanks to D&D in the last quarter of 2014.

Net revenues are 1,3 billion for the last quarter of 2014 or Hasbro. 0.1% of 1,3 billion is 1,3 million. 1% is 13 millions. D&D net revenues should be in that braquette. Let us say it is more, cause D&D is awesome, and it represent 2% or 26 millions. 26 millions is just 0.006% of revenues for 2014. D&D is just a blip on Hasbro's radar.

I wouldn't expect much info on D&D when Hasbro talks to shareholders.

 

[tomBitonti]

Hey, do you have a link to the previous info? I curious as to the numbers.

As a good benchmark, for the year, if they can sell a million books for 21.50 each, that would bring in revenue of 21.5 million, or 0.5% of a revenue of 4.3 billion.

Thx!

TomB

 

[Dannyalcatraz]

The key problem with that is that in a D&D game players provide their own protagonists. This means that most of those well drawn characters have to come from the tie-in fiction, which is a peripheral element of an already niche hobby.

This is an excellent insight.

Another key factor though, is sheer market size. D&D, while near and dear to OUR hearts, has never been, is not now, nor will it likely ever have a market size that compares to the IP that brings in the big bucks.

 

[Kramodlog]

Hey, do you have a link to the previous info? I curious as to the numbers.

As a good benchmark, for the year, if they can sell a million books for 21.50 each, that would bring in revenue of 21.5 million, or 0.5% of a revenue of 4.3 billion.

Thx!

TomB

And the Lord sayeth ask and you shall receive. Sort of.

There are no numbers. Just that that in 2014 Hasbro had higher net revenues from D&D. http://www.enworld.org/forum/showth...arterly-Report-as-Revenue-Increase-for-Hasbro

Not surprising since they didn't have a lot of revenues for the last two years.

 

[tomBitonti]

Hi,

Thanks!

Can we equate "net revenue" with "earnings"?

Although, that tells me that D&D pulled in positive earnings, not much about the quantity. I suppose that means they made more from sales than they spent creating and distributing and such. Hmm, would the year's earnings (say, for D&D) include an adjustment for the present value of the development cost (not sure of the correct terminology to use). That seems like a debt from the business unit to whatever organization provided the development funds.

Thx!

TomB