Hasbro (HAS) Q4 2024 earnings summary

Executive summary

• Achieved record operating profit margin above 20% in 2024, with improved profitability and earnings growth despite a 17% revenue decline, driven by cost savings, digital gaming, and licensing growth.

• Wizards of the Coast and Digital Games segment grew 4% for the year, with Magic: The Gathering and Monopoly Go as key drivers.

• Completed eOne Film and TV divestiture, significantly impacting reported revenue and Entertainment segment results.

• Strategic focus shifted to high-profit, high-growth areas, exiting non-core businesses and reducing content budget by over 95%.

• Playing to Win strategy and operational excellence program introduced, targeting $1 billion in cost savings by 2027.

Financial highlights

• Full year 2024 revenue was $4.1 billion, down 17% (7% excluding eOne); Wizards up 4%, Consumer Products down 12%, Entertainment down 88%.

• Adjusted operating profit was $839 million (20.3% margin, up 10.8 pts YoY); adjusted net earnings $563 million, EPS $4.01.

• Operating cash flow for 2024 was $847 million, up $122 million year-over-year.

• Returned $390 million to shareholders via dividends and reduced debt by $83 million.

• Adjusted EBITDA for 2024 was $1.06 billion, up 49% year-over-year.

Outlook and guidance

• 2025 revenue expected to be up slightly year-over-year on a constant currency basis, with adjusted operating margin guidance of 21–22%.

• Adjusted EBITDA guidance for 2025 is $1.1–$1.15 billion; capex ~$250 million.

• Wizards revenue forecast to grow 5%–7%, with operating margin expected at 39%–40%.

• Consumer Products revenue expected flat to down 4%, with operating margin between 8%–10%.

• Mid-single-digit revenue CAGR projected through 2027, with annual operating margin expansion of 50–100 basis points and $1 billion cost savings target.