* Entertainment and licensing unit profit more than doubles
* Q1 adj profit $0.43/shr vs est $0.38/shr
* Shares jump as much as 8.5 pct to $104.14 in morning
(Adds details, updates shares)
April 24 Hasbro Inc, the No. 2 U.S.
toymaker, reported higher-than-expected quarterly earnings as
strong demand for digital games more than doubled profit in its
entertainment and licensing business, sending its shares to a
The company's shares rose as much as 8.5 percent to $104.14.
Hasbro quarterly sales also overtook larger rival Mattel Inc
for the first time in 17 years.
Hasbro's results were in contrast to Mattel, which reported
a bigger-than-expected quarterly loss and drop in sales last
week, hurt by poor demand by retailers for its Barbie and
Fisher-Price brands and due to big discounts to move inventory
left after weak holiday sales.
Hasbro's sales have been on the rise, especially after it
won a lucrative contract from Mattel for dolls based on Walt
Disney Co's princesses such as Cinderella and Frozen's
Elsa in 2014.
Total sales from Hasbro's gaming category, which includes
the high-margin digital gaming business and brands such as
"Dungeons and Dragons", rose 10 percent to $253.3 million in the
first quarter ended April 2.
The company's digital gaming unit also includes mobile game
developer Backflip Studios LLC, which it bought in January. It
makes games such as "Transformers: Earth Wars" and "Nerf Hoops".
"The (Backflip) business revenues have been accelerating as
we brought onboard some new leadership and also, we see our
brands like "Transformers: Earth Wars" performing well," Chief
Executive Brian Goldner said on a conference call.
Hasbro's entertainment and licensing operating profit more
than doubled to $11.3 million.
The company said it expects sales in the coming quarters to
be boosted by upcoming films including Marvel's "Guardians of
the Galaxy Vol. 2", to be released early next month, and
"Transformers: The Last Knight", to be released in June in the
Revenue rose 2.2 percent to $849.7 million in the quarter.
Net income attributable to Hasbro rose to $68.6 million, or 54
cents per share, from $48.8 million, or 38 cents per share, a
Hasbro earned 43 cents per share, excluding an 11 cent
benefit due to the adoption of a new accounting standard
governing stock compensation for employees. The company said it
had earlier expected an 8 cents benefit.
Analysts on average had expected a profit of 38 cents per
share and revenue of $822.1 million, according to Thomson
Up to Friday's close, the Pawtucket, Rhode Island-based
company's shares had risen 23.5 percent this year.
(Reporting by Jessica Kuruthukulangara and Sruthi Ramakrishnan
in Bengaluru; Editing by Shounak Dasgupta)