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Hasbro Posts $32.9 Million Profit in First Quarter
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<blockquote data-quote="Enforcer" data-source="post: 3473434" data-attributes="member: 396"><p>"Major company endeavors to make money and uphold responsibility to shareholders. In other news, water is wet." Is this some attempt to make Wizards (and/or Hasbro) out to be Evil Money-Grubbers, Inc.? If so, I find that silly. If not, then my apologies for assuming the worst--the dire predictions of doom and gloom recently have made me pessimistic of people's intentions with their posts.</p><p></p><p>I can't help but notice the total lack of any mention of Wizards of the Coast products in the article. I don't imagine that Wizards of the Coast accounts for a big part of Hasbro's bottom line, and I'm guessing D&D doesn't compare to Magic: The Gathering even within Wizards of the Coast.</p><p></p><p>To back that claim up, let's look at <a href="http://www.sec.gov/Archives/edgar/data/46080/000095013507001259/b63637hoe10vk.htm" target="_blank">Hasbro's 10-K</a> (annual report filed with the SEC) filed on Feb. 28, 2007 (i.e. not very long ago): "No individual line of products accounted for 10% or more of our consolidated net revenues during our 2006 or 2004 fiscal years. During the 2005 fiscal year, revenues generated from the sale of STAR WARS products produced under our license with Lucas Licensing and Lucasfilm were approximately $494,000, which was 16% of our consolidated net revenues in 2005. No other line of products constituted 10% or more of our consolidated net revenues in 2005." So no, not a huge impact by Wizards or D&D as a brand. Considering Hasbro sells Nerf, Star Wars, My Little Pony, Playskool, and Transformers and <em>none of them*</em> count for 10% or more of net revenues, how significant do we think D&D can be?</p><p></p><p>Also: "These increases [in North American net revenues] were partially offset by decreased games sales in 2005, primarily MAGIC: THE GATHERING and DUEL MASTERS trading card games." Ouch, looks like decreases in Magic sales actually hurt Hasbro's net revenues. Still no mention of D&D as far as revenues go.</p><p></p><p>And: "In addition, the Company and Infogrames entered into a new licensing agreement that provides Infogrames exclusive rights to DUNGEONS & DRAGONS and rights to nine other properties for a limited number of platforms." This is one of two mentions of D&D in the whole report--that Infogrames has exclusive license to video games based on the D&D brand.</p><p></p><p>The other is: "WIZARDS OF THE COAST offers a variety of successful trading card and roleplaying games, including MAGIC: THE GATHERING and DUNGEONS & DRAGONS. We seek to keep our core brands relevant through sustained marketing programs as well as by offering consumers new ways to experience them."</p><p></p><p>"New ways to experience them" might mean "digital initiative," but this is standard "Rah Rah!" positive language for the shareholders and analysts.</p><p></p><p>My personal conclusion? D&D isn't mentioned at all as far as financial impact. As gamers we are passionate enthusiasts in a dearly-beloved hobby, but our hobby doesn't account for much at all in the grand scheme of things and as such we need to get over ourselves as being vital to Hasbro and their shareholders. Personally, I'm happy there's a gaming industry at all to keep me and my group happy for a few hours on any given Sunday. And so long as Hasbro exceeds Wall Street's expectations, the less likely they'll cut less significant brands such as D&D. I read this article as damn good news for our hobby.</p><p></p><p><span style="font-size: 9px">*With the exception of Star Wars in 2005 only, when it accounted for 16% of net revenues, as mentioned in the above quote.</span></p></blockquote><p></p>
[QUOTE="Enforcer, post: 3473434, member: 396"] "Major company endeavors to make money and uphold responsibility to shareholders. In other news, water is wet." Is this some attempt to make Wizards (and/or Hasbro) out to be Evil Money-Grubbers, Inc.? If so, I find that silly. If not, then my apologies for assuming the worst--the dire predictions of doom and gloom recently have made me pessimistic of people's intentions with their posts. I can't help but notice the total lack of any mention of Wizards of the Coast products in the article. I don't imagine that Wizards of the Coast accounts for a big part of Hasbro's bottom line, and I'm guessing D&D doesn't compare to Magic: The Gathering even within Wizards of the Coast. To back that claim up, let's look at [url=http://www.sec.gov/Archives/edgar/data/46080/000095013507001259/b63637hoe10vk.htm]Hasbro's 10-K[/url] (annual report filed with the SEC) filed on Feb. 28, 2007 (i.e. not very long ago): "No individual line of products accounted for 10% or more of our consolidated net revenues during our 2006 or 2004 fiscal years. During the 2005 fiscal year, revenues generated from the sale of STAR WARS products produced under our license with Lucas Licensing and Lucasfilm were approximately $494,000, which was 16% of our consolidated net revenues in 2005. No other line of products constituted 10% or more of our consolidated net revenues in 2005." So no, not a huge impact by Wizards or D&D as a brand. Considering Hasbro sells Nerf, Star Wars, My Little Pony, Playskool, and Transformers and [i]none of them*[/i] count for 10% or more of net revenues, how significant do we think D&D can be? Also: "These increases [in North American net revenues] were partially offset by decreased games sales in 2005, primarily MAGIC: THE GATHERING and DUEL MASTERS trading card games." Ouch, looks like decreases in Magic sales actually hurt Hasbro's net revenues. Still no mention of D&D as far as revenues go. And: "In addition, the Company and Infogrames entered into a new licensing agreement that provides Infogrames exclusive rights to DUNGEONS & DRAGONS and rights to nine other properties for a limited number of platforms." This is one of two mentions of D&D in the whole report--that Infogrames has exclusive license to video games based on the D&D brand. The other is: "WIZARDS OF THE COAST offers a variety of successful trading card and roleplaying games, including MAGIC: THE GATHERING and DUNGEONS & DRAGONS. We seek to keep our core brands relevant through sustained marketing programs as well as by offering consumers new ways to experience them." "New ways to experience them" might mean "digital initiative," but this is standard "Rah Rah!" positive language for the shareholders and analysts. My personal conclusion? D&D isn't mentioned at all as far as financial impact. As gamers we are passionate enthusiasts in a dearly-beloved hobby, but our hobby doesn't account for much at all in the grand scheme of things and as such we need to get over ourselves as being vital to Hasbro and their shareholders. Personally, I'm happy there's a gaming industry at all to keep me and my group happy for a few hours on any given Sunday. And so long as Hasbro exceeds Wall Street's expectations, the less likely they'll cut less significant brands such as D&D. I read this article as damn good news for our hobby. [SIZE=1]*With the exception of Star Wars in 2005 only, when it accounted for 16% of net revenues, as mentioned in the above quote.[/SIZE] [/QUOTE]
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