WotC Some Takeaways From Hasbro's Latest Reports

Hasbro's latest quarterly conference call included a number of interesting details regarding Wizards of the Coast and Dungeon & Dragons.

CEO Chris Cocks reported a successful quarter, with the 2024 Player's Handbook selling 50% more copies than anticipated.

He also talked about D&D Beyond, the official D&D online platform. With 19 million registered users, he reported that a massive 60% of D&D's revenue was direct to consumer sales--as recently as 2022 when Hasbro purchased D&D Beyond from Fandom, that figure was 0%.

However, WotC's revenue was down 5% from the same period last year--and this despite Magic: the Gathering reporting a 3% increase. Tabletop sales overall were up 2%, but digital sales have dropped by a whopping 19%. Cocks attributed WotC's drop to the high peak caused by Baldur's Gate 3 last year.

• WotC down 5%
• Magic: the Gathering up 3%
• Tabletop up 2%
• Digital sales down 19%
• Total Hasbro gaming down 6%
• Toys down 10%
• Entertainment down 17% (not counting the eOne sale)

Hasbro's profit for this quarter was $223.2 million; the same period last year saw a $171.1 million loss.

 

[mamba]

Why would they? The investors only care about the topline numbers

in that case, why wouldn't they...

, they explain the basics of what's going on if they want.

no they do not, that is precisely why they are doing this, they can tell a story that makes them look better than the actual hard numbers would. They spend effort on this, there is a reason for that

But your accusation that they "hid" the BG3 numbers is simply false, they explained last year that BG3 had a significant impact.

They did not point out that without BG3 D&D would have been down last year, this time they point out that it grew while the BG3 licensing is the reason for the decline. They tell the story they want to tell and the obfuscation is making this possible

 

[Oofta]

in that case, why wouldn't they...

Companies don't do that. There are a lot of rules and regulations about how financial reporting is done for a publicly traded company. Breaking it down into product line level would be expensive and complex. More to the point investors don't care.

no they do not, that is precisely why they are doing this, they can tell a story that makes them look better than the actual hard numbers would. They spend effort on this, there is a reason for that


They did not point out that without BG3 D&D would have been down last year, this time they point out that it grew while the BG3 licensing is the reason for the decline. They tell the story they want to tell and the obfuscation is making this possible

So acknowledging the impact of BG3 when it has a positive net impact is bad and when they acknowledge that they are no longer benefitting is also bad? That's quite the trick!

Of course they put financials in the best light. Just like every other publicly traded company. But it doesn't really matter what anyone says you'll just reply HASBRO bad! So have fun with that.

 

[Tales and Chronicles]

Did the Hasbro stock drop Friday morning? If not, it would seem the presentation went well with the investors and they felt they had the relevant informations.

The quarterly report isn't for you. Not having all the minutiae you would like isn't a smoke and shadow maneuver; your need for a specific information just is relevant to them or their investors.

It's like arguing that since you were not invited to the big quarterly meeting, they must be trying to hide something for you.

 

[mamba]

Companies don't do that. There are a lot of rules and regulations about how financial reporting is done for a publicly traded company. Breaking it down into product line level would be expensive and complex. More to the point investors don't care.

there also is a lot of wiggle room, as seen by Hasbro's reporting. Sure, it has to be accurate, but the grouping is very much theirs to decide. I very much expect that internally they have a clearer view and that they spend effort on obfuscating that view for their report.

So acknowledging the impact of BG3 when it has a positive net impact is bad and when they acknowledge that they are no longer benefitting is also bad? That's quite the trick!

not sure I follow, that is basically the opposite of what I wrote. Last year they tried to hide that D&D sales were down and the only reason they could show growth was BG3 licensing. This year they specifically point out that D&D sales are up and the overall decline is only due to BG3 licensing. So they do the exact opposite from last year's reporting this time around and both times they paint themselves in the better light. That is the only consistency in their reporting.

 

[mamba]

Did the Hasbro stock drop Friday morning? If not, it would seem the presentation went well with the investors and they felt they had the relevant informations

No idea if the stock was up or down, and judging that the report contained the relevant information if there is no drop is just laughable. It could contain the relevant information and still result in a drop, it could lack relevant information and rise based on the story they are selling or because the numbers are still good enough.

 

[Oofta]

there also is a lot of wiggle room, as seen by Hasbro's reporting. Sure, it has to be accurate, but the grouping is very much theirs to decide. I very much expect that internally they have a clearer view and that they spend effort on obfuscating that view for their report.


not sure I follow, that is basically the opposite of what I wrote. Last year they tried to hide that D&D sales were down and the only reason they could show growth was BG3 licensing. This year they specifically point out that D&D sales are up and the overall decline is only due to BG3 licensing. So they do the exact opposite from last year's reporting this time around and both times they paint themselves in the better light. That is the only consistency in their reporting.

Do you know that sales were down? Any evidence of this assertion?

In any case, investors don't really care. Sales of D&D books is not the main profit center any more and they don't care about that level of detail anyway.

 

[Tales and Chronicles]

No idea if the stock was up or down, and judging that the report contained the relevant information if there is no drop is just laughable. It could contain the relevant information and still result in a drop, it could lack relevant information and rise based on the story they are selling or because the numbers are still good enough.

Yeah, exactly: it's all speculation!

Funny how that works.

 

[mamba]

Do you know that sales were down? Any evidence of this assertion?

Look at last year's numbers... yes D&D sales were down, that they could show D&D growth was due to BG3 licensing, the math does not allow for another result

In any case, investors don't really care. Sales of D&D books is not the main profit center any more and they don't care about that level of detail anyway.

it is one of their biggest divisions, I'd say investors do care

 

[mamba]

Yeah, exactly: it's all speculation!

Funny how that works.

I would not say it all is, but there certainly is some level of speculation, and Hasbro is trying to tell the best possible story rather than the actual story because that helps with the speculation bit

 

[Oofta]

Look at last year's numbers... yes D&D sales were down, that they could show D&D growth was due to BG3 licensing, the math does not allow for another result


it is one of their biggest divisions, I'd say investors do care

Care to offer a reference? Actual, verifiable numbers that show sales are down and not just, for example, slowing? Or that perhaps numbers reflect investment in the 2024 revisions?

As far as D&D being one of their biggest divisions, it's small compared to MtG. It's also not a separate corporate entity.