In a recent earnings call, Hasbro announced one of the best years financially for both the Magic the Gathering and Dungeons & Dragons brands. The success of these brands, and other historic Hasbro-owned brands, provided the company with a 15% increase in gaming revenue compared with last year, despite the ongoing pandemic situation.
A Big Year For Both Magic the Gathering And Dungeons & Dragons
Magic The Gathering and Dungeons & Dragons led a stellar year for Hasbro, with both brands increasing in revenue gained across multiple markets as both had record years. Magic managed to increase operating profits in the North American market by 4%, offsetting an increase in the price of freight over the past financial year, as well as a larger investment in R&D at Wizards of the Coast.
A large part of Hasbro’s strategy has been to lean more heavily on e-gaming for the Magic and D&D brands, which makes a lot of sense considering the number of countries around the world affected by lockdowns and other negative commercial effects of the ongoing pandemic situation. Right now, just under 30% of Hasbro’s total revenue is coming from digital gaming products, an increase of 45% over last year.
A Paradigm Shift For Hasbro’s Biggest Gaming Brands?
It seems likely that the focus for both Dungeons & Dragons and Magic The Gathering going forward will be on e-commerce outlets for the foreseeable future as the world continues to recovery from COVID-19. With MTG Arena driving an increase in profits last year, and seemingly doing the same again this year, Hasbro will almost certainly direct their increase in investment on “innovative and new growth drivers” into the online MTG platform, especially with it releasing on mobile platforms throughout the year, something that investors were keen to hear about.
What do you think of Hasbro’s stellar financial year? Do you think that Magic The Gathering and Dungeons & Dragons will continue to grow? Let us know your thoughts in the comments below.