Hasbro Inc. (NASDAQ:HAS) Q2 2019 Earnings Conference Call - Final Transcript

Jul 23, 2019 • 08:00 am ET


Hasbro Inc. (NASDAQ:HAS) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning. Welcome to the Hasbro Second Quarter 2019 Earnings Conference Call. [Operator Instructions].

At this time, I'd like to turn the call over to Ms. Debbie Hancock, Senior Vice President of Investor Relations. Please go ahead.

Debbie Hancock

Thank you and good morning, everyone. Joining me this morning are Brian Goldner, Hasbro's Chairman and Chief Executive Officer, and Deb Thomas, Hasbro's Chief Financial Officer. Today, we will begin with Brian and Deb providing commentary on the company's performance, and then we will take your questions. Our earnings release and presentation slides for today's call are posted on our investor website.

The press release and presentation include information regarding non-GAAP adjustments and non-GAAP financial measures. Our call today will discuss certain adjusted measures, which exclude these non-GAAP adjustments. A reconciliation of GAAP to non-GAAP measures is included in the press release and presentation.Please note that whenever we discuss earnings per share or EPS, we are referring to earnings per diluted share.

Before we begin, I would like to remind you that during this call and the question-and-answer session that follows, members of Hasbro management may make forward-looking statements concerning management's expectations, goals, objectives, and similar matters. There are many factors that could cause actual results or events to differ materially from the anticipated results or other expectations expressed in these forward-looking statements.

Those factors include those set forth in our annual report on Form 10-K, our most recent 10-Q, in today's press release and in our other public disclosures. We undertake no obligation to update any forward-looking statements made today to reflect events or circumstances occurring after the date of this call.

I would now like to introduce Brian Goldner. Brian?

Brian D. Goldner

Thank you, Debbie. Good morning, everyone and thank you for joining us today. The Hasbro team executed another good quarter, including revenue growth of 9% and operating profit gains of 47%. Revenues were up around our blueprint and across multiple regions, including growth in the US, Europe and Asia Pacific. Our commitment to creating the World's Best Play Experiences through innovation and storytelling for our consumers, fans and audiences drove revenue gains of 6% and adjusted operating profit growth of 73% for the first six months of the year.

Behind original release slate and continued strength in digital gaming Magic: The Gathering delivered an outstanding quarter and first half of the year. The War of the Spark set was extremely well received by players across formats, driving robust quarterly growth in tabletop and digital.

Player engagement expanded with global increases in total unique players and new players. This in turn drove an incremental increase in Magic: The Gathering Arena games played with approximately 400 million played in the quarter and 1.1 billion since the game entered open beta in September of last year. In addition, the Modern Horizon set released during the second quarter exceeded expectations and contributed to higher tabletop revenues during the quarter. This release timing was earlier in 2019 versus last year when a similar release occurred in the