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.

 

[TiQuinn]

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.

I think this underscores the point that quarterly reports are about informing the investors rather than informing industry watchers. Different goals, different information. The latter is not their target at all. If investors started demanding the breakdowns you advocate for, you’d see them start to be produced in the reports. But the rollups of the divisions and sales are plenty of information for the investors.

The stock dropped btw. But a day to day drop is besides the point.

 

[mamba]

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?

Baldur's Gate 3 Has Made a Ton of Money for Hasbro

Though it didn't make Baldur's Gate 3 directly, Hasbro is still cashing in big on the success of last year's wildly-popular Game of the Year.

gamerant.com

"Hasbro has made $90 million through licensing deals for Baldur's Gate 3, contributing to a 7% increase in earnings for Wizards of the Coast."

1Q2024 report: 'First quarter growth in [...] DUNGEONS & DRAGONS (+3%)'

A 7% increase for WotC is significantly more than a 3% increase for D&D, so the rest of D&D contracted.

In 3Q2023 the report said '40% revenue growth in Wizards of the Coast and Digital Gaming segment behind strong launch of Baldur’s Gate III' which YTD was 7% at the time with Wizards Tabletop at 1%, which to me means D&D shrank because MtG grew by more than that.

As to the impact of BG3, here is the 3Q2023 breakdown 'Franchise Performance Third quarter growth in DUNGEONS & DRAGONS (>+100%), [...] MAGIC: THE GATHERING (+20%) and HASBRO GAMING (+3%)'

So yeah, either this is sop obfuscated as to be next to useless altogether, or D&D declined in 2023 / early 2024

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.

sure, but MtG is their biggest division by far, D&D might be the 4th largest out of dozens to hundreds

 

[Oofta]

Baldur's Gate 3 Has Made a Ton of Money for Hasbro

Though it didn't make Baldur's Gate 3 directly, Hasbro is still cashing in big on the success of last year's wildly-popular Game of the Year.

gamerant.com

"Hasbro has made $90 million through licensing deals for Baldur's Gate 3, contributing to a 7% increase in earnings for Wizards of the Coast."

1Q2024 report: 'First quarter growth in [...] DUNGEONS & DRAGONS (+3%)'

A 7% increase for WotC is significantly more than a 3% increase for D&D, so the rest of D&D contracted.

In 3Q2023 the report said '40% revenue growth in Wizards of the Coast and Digital Gaming segment behind strong launch of Baldur’s Gate III' which YTD was 7% at the time with Wizards Tabletop at 1%, which to me means D&D shrank because MtG grew by more than that.

As to the impact of BG3, here is the 3Q2023 breakdown 'Franchise Performance Third quarter growth in DUNGEONS & DRAGONS (>+100%), [...] MAGIC: THE GATHERING (+20%) and HASBRO GAMING (+3%)'

So yeah, either this is sop obfuscated as to be next to useless altogether, or D&D declined in 2023 / early 2024


sure, but MtG is their biggest division by far, D&D might be the 4th largest out of dozens to hundreds

That doesn't mean anything. I asked if you can prove that sales are down and this doesn't say that. Amongst other things we don't know how they're writing off the investment cost of the 2024 revisions.

But even if sales or profit margin on the 2014 books were down a bit it wouldn't surprise me with new versions right around the corner. I also don't really care much about that kind of fluctuation, I was saying that you've made an assertion that sales of the books are down and you can't do that.

 

[Tales and Chronicles]

Wouldn't it be fraud for a company to hide losses and other valuable informations to their shareholders?

I'm not keen on American market legislation.

 

[mamba]

I think this underscores the point that quarterly reports are about informing the investors rather than informing industry watchers.

I do not believe that Hasbro obfuscates the numbers as a service to investors, they do it so they have better control of the narrative

The stock dropped btw. But a day to day drop is besides the point.

agreed, this is besides the point

 

[mamba]

hat doesn't mean anything. I asked if you can prove that sales are down and this doesn't say that. Amongst other things we don't know how they're writing off the investment cost of the 2024 revisions.

revenue has nothing to do with investments, profit would

 

[mamba]

Wouldn't it be fraud for a company to hide losses and other valuable informations to their shareholders?

I'm not keen on American market legislation.

they are not hiding losses, they are combining different things together and report the aggregate accurately. All they do is spin the story the gray area of the aggregate lets them get away with when the individual pieces would not

 

[Tales and Chronicles]

they are not hiding losses, they are combining different things together and report the aggregate accurately. All they do is spin the story the gray area of the aggregate lets them get away with when the individual pieces would not

But what is the narrative and how does it benefit them?

You think the situation is so dire at Hasbro/WotC that they need to present a fabricated story?

 

[Remathilis]

them not calling it out is the issue… that is like saying ‘since they were robbing a bank, what choice did they have but to bring guns’

D&D coffee mugs are down 2%, T-shirts are up 3%, vinyl figures down 10%, ...

 

[Remathilis]

WotC: so we're doing pretty good at the moment...

Community: no you're not, you're failing! Why are you lying? You're practically on your last legs! You're 5 minutes from bankruptcy! When are you selling to Paizo?!?