Hasbro (HAS) Goldman Sachs Communacopia + Technology Conference 2024 summary

Strategic themes and mission

• Focus on expanding play across all ages, leveraging digital transformation and strategic partnerships to drive growth and relevance globally.

• Aspiration to increase global consumer reach from one in 14 to one in five over the next five to seven years, with emphasis on digital, emerging markets, and value channels.

• Multi-year investment in digital games, highlighted by successes like Monopoly Go! and Baldur's Gate 3, and a leading position in digital games licensing.

• Operational discipline and cost savings are key achievements, with ongoing focus on efficiency and nimbleness in value-oriented and emerging markets.

• Partnerships are critical for extending into new platforms and markets, with a balanced approach to capital allocation and risk management.

Digital gaming and licensing strategy

• Digital gaming is a major growth lever, with a shift toward self-publishing on PC and console, while maintaining strong mobile partnerships.

• Monopoly Go! expected to generate $105 million in revenue for the year, with stable engagement and a 3-5% decay rate anticipated in the back half.

• Long-term annuity potential seen in top-performing games, with a focus on building brand relationships anchored in play rather than just storytelling.

• Growth in licensing, with a 15-20% CAGR in new deals, and exploration of joint ventures and partnerships to balance risk and capture upside.

• Starting in 2026, plan to release one to two self-published games annually, beginning with the new Exodus IP and a D&D title.

Magic: The Gathering and brand growth

• Magic: The Gathering has grown from $400 million to over $1.1 billion, driven by embracing new play formats like Commander.

• Growth strategy focuses on player trends, new formats, and integrating external IPs, with upcoming collaborations including Final Fantasy and Marvel.

• Magic is the most profitable business segment, expected to return to mid-single-digit growth in the coming years after a flat year due to tough comps.

• The play system approach allows for long-term engagement and expansion through Universes Beyond initiatives.

• No significant price increases planned; focus remains on delivering value and engaging players in preferred formats.