Business Discussion

[ExploderWizard]

Yers yes yes, all this of course but don't forget :

Opium production
Gambling
Prostitution
Motion picture distribution

AND.....Global Extortion.

 

[ashockney]

Toy and Game Market Sector

Toys & Games Industry
Companies that manufacture toys, games, and other leisure products, primarily targeted towards children.
Toy and Game Industry Market Sector (only two real players):
Hasbro Market Cap: $6.7B (673 of 5164 publicly traded companies)
Mattel Market Cap: $8.6B (553 of 5164 publicly traded companies)

Company Overview
Hasbro, Inc. is a branded play company providing children and families around the world with a wide-range of immersive entertainment offerings based on the Company’s world class brand portfolio. From toys and games, to television programming, motion pictures, video games and a comprehensive licensing program, Hasbro strives to delight its customers through the strategic leveraging of well-known and beloved brands such as TRANSFORMERS, LITTLEST PET SHOP, NERF, PLAYSKOOL, MY LITTLE PONY, G.I. JOE, MAGIC: THE GATHERING and MONOPOLY. The Hub, Hasbro’s multi-platform joint venture with Discovery Communications launched on October 10, 2010. The online home of The Hub is www.hubworld.com.

Market leader with innovative world-class brand portfolio

Successful long-term strategy focused on:
• Product innovation and geographic expansion
• Increased brand visibility through feature films, children’s TV network, The Hub, digital gaming and lifestyle licensing

Long-term partnerships with industry leaders including Electronic Arts, Marvel, Lucasfilm and Sesame Workshop

Hasbro’s Blueprint for Growth
Since 2001 Hasbro has been focused on re-imagining, re-inventing, and re-igniting its world-class portfolio of brands in four key areas – toys and games innovation, digital gaming, entertainment and lifestyle licensing. The primary objective is to provide an immersive experience across the numerous ways consumers globally experience the Company’s brands.

Hasbro Goes to the Movies
Hasbro and its studio partners are developing Hasbro brands into motion pictures. Feature films in development include:
Transformers 3 (Currently scheduled for a 2011 release)
Battleship (Currently scheduled for a 2012 release)
Ouija (Currently scheduled for a 2012 release)
Stretch Armstrong (Currently scheduled for a 2013 release)
Additional Hasbro brands may also be coming to the big screen. Stay tuned!

Hasbro Corporate Strategy Timeline:
1999 — Hasbro acquires Wizards of the Coast, and its Magic The Gathering franchise
1999 — License with Lucasfilm (Star Wars) renewed (Kenner signed in 1977)
2001 — Turnaround strategy focused on fully leveraging brand portfolio established
2006 — Licensing agreement with Marvel signed
2007 — Licensing agreement with Electronic Arts signed
2007 — Transformers movie is released; One of highest-grossing film series ever
2008 — Brian Goldner becomes Hasbro CEO
2009 — Forms joint venture with Discovery Communications for kids TV channel The Hub
2009 — Signs strategic alliance with Sesame Workshop
2010 — The Hub launches on 10.10.10

 

[ashockney]

Hasbro Financial Performance

Financial Performance (in thousands, except per share data)
2005 2006 2007 2008 2009 2010
Net Rev $3,087 $3,151 $3,837 $4,021 $4,067 $4,000
Op Mar 10.1 11.9 13.5 12.3 14.5 15
Cash $942 $715 $774 $630 $636
LT Debt $528 $494 $845 $709 $1,131 $1,508


"For 2010, we anticipate reporting our tenth consecutive year of earnings per share growth. We no longer believe we will grow revenues for the year due to a slowdown in U.S. consumer demand, which we experienced late in the fourth quarter," said Brian Goldner, Hasbro's President and Chief Executive Officer. "In 2010, we had a number of strong product initiatives, good growth internationally, including in the emerging markets, and we continued to unlock the global potential of our brands while tightly managing our expenses. Collectively, these factors are contributing to our expected growth in earnings per share for 2010 despite reduced revenues."

Global Core Brands now account for 50% of Total Revenues. (2009) up from 17% in 2001
Seasame Street, Star Wars, Marvel - Long Term Partner Brands
Strategic Alliance (50/50 Partnership) with Discovery Communications to launch HUB Channel - targeting children 6-12
Hasbro Studios - Developing content for movies, television, digital distribution - 300 half hours in development

 

[Glade Riven]

I hope this thread doesn't turn into a "Let's bash Hasbro" thread. While it may not be what you want, Habro has some quality products right now and has done a good job launching their first TV station.

 

[ashockney]

Highlights from 2009 Annual Report

Star Wars and Marvel licenses extended (how does this cross with Disney?)
New Seasame Street strategic allienace (2009 - 2019)
Share gains in emerging markets - Brazil, China, Asia, Latin America, and Eastern European, new offices established in Russia and Romania

Cost savings initiatives in 2009 included freezing salaries, hiring only critical positions, and reducing travel.

Key brands include: Transformers, GI Joe, Nerf, Littlest Pet Shop, Play-Doh, Tonka, and M:TG. These gained market share in major markets.

Transformers: $592mm (23%)
GIJoe: $125mm
NERF: grew 25%
PLAY-DOH and TONKA: both double digit growing approximately 25%
(anyone catch who's missing from the annual report here?)

Entertainment and Licensing Segment $155mm in Revenue in 2009, 44% growth

Top grossing iPhone Apps - Battleship, Monopoly, Scrabble

TV investment diluted earnings .12/share, expected to increase in 2010

 

[Quickleaf]

What is "lifestyle licensing"? How is it different from plain old licensing?

I'd be curious to know what amount of the $144 million licensing revenue came from the D&D brand...

 

[Olgar Shiverstone]

Judging from their top/key brands, I'll bet D&D doesn't crack the top 20 -- which may very well be why it is treated as it is to try and get it to be a better performer.

Methinks I wish D&D were in the hands of a smaller private company.

 

[the Jester]

Methinks I wish D&D were in the hands of a smaller private company.

Yeah- nothing against Hasbro per se, but I think something like D&D has to be ready to operate with lower profit margins than a big company like Hasbro is willing to accept for an extended period. The push for a new edition, when it comes, will likely come from the suits that don't realize how divisive new editions are to the fan base, based on the fact that new editions sell more product (at least for a while).

 

[Olgar Shiverstone]

You know, I think WotC was that company back before it was snapped up by Hasbro and when Adkinson still ran it, but that may just be rose-colored glasses.

 

[kitsune9]

Yers yes yes, all this of course but don't forget :

Opium production
Gambling
Prostitution
Motion picture distribution

AND.....Global Extortion.

That's under their Black Line Division. They are looking to expand into racketeering, gun running, and underwriting for mortgage backed credit default swaps. Despite this, investors were concerned about the over-reaching and pushed shares down $0.16 Friday down to $44.49.