TFW2005 Coverage Of Hasbro Third Quarter 2017 Earnings Conference Call

Discussion in 'Transformers News and Rumors' started by SilverOptimus, Oct 23, 2017.

  1. SilverOptimus

    SilverOptimus Movie News Monster Moderator News Staff

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  2. TCJJ

    TCJJ 117% Tank Engine

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    I'm continually impressed with Hasbro just as a company. In a shrinking market, they still manage to profit, and the numbers look rather nice.

    I think we'll likely see partner brands jump up in the fourth quarter simply because of Star Wars but I suppose we'll have to wait and see.

    I'm also continually impressed with Brian Goldner as CEO. That man seems to do wonders with Hasbro, and he seems like the perfect person to have in charge.
     
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  3. T-Hybrid

    T-Hybrid Team Lovehammer

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    That seems...bad....considering it was probably the biggest release that week.
     
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  4. JazzIsBack

    JazzIsBack Well-Known Member

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    As someone who does not understand business jargon can someone dumb this down?
     
  5. MapleSamurai

    MapleSamurai MapleSamurai

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    That's the second time in recent memory that Hasbro's pretended its Machinima series has been a lauded success. I wonder if anyone's actually told the Hasbro higher ups that most people thought the Combiner Wars cartoon was garbage, or if they're working under the old propagandists' doctrine that "if you tell a lie often enough, it becomes the truth."
     
    Last edited: Oct 23, 2017
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  6. BigRed

    BigRed Well-Known Member

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    Transformers, NERF and other brands did well enough that Hasbro could offset losses caused by the Toys R Us bankrupcity which affected all toy companies. This movie line apparently generated higher revenue than the AOE line managed too.

    That's about it as far as things relevant to us goes.
     
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  7. Deadend

    Deadend Spark of Creation

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    Good to hear! With POTP coming, alongside the new star wars movie, I expect next quarter to do pretty well too.
     
  8. stad

    stad Well-Known Member

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    Revenue up 7% but profit down by $1.1 million....
     
  9. Blitz.

    Blitz. Well-Known Member

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    "Softness in the UK and Brazil"

    £23 for the smallest DLX toys to date, found your problem. that's almost a 100% increase in retail price over a decade ago Hasbro.
     
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  10. bellpeppers

    bellpeppers A Meat Popsicle

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    With NET Earnings up 3%.

    Can someone dumbify this for me?

    7% increase of cash? With a decrease of profit? So what's the difference between '7% revenue increase' and '3% eranings increase?'.

    And, despit that a decrease in profits, despite the increases in revenue and earnings? Increase of operating costs?
     
  11. Darkryt

    Darkryt Combiner Enthusiast

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    It's probably just business.

    They seemed to have already worked out plans for two more cartoons, and it would be grossly unprofessional for them to just come out and say, "yeah, the Machinima guys - who we're still working with because we've already signed all the contracts - actually really suck at this."
     
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  12. Wazdakka

    Wazdakka Decepticon

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    \"Critically acclaimed\" my foot. 
     
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  13. Obsidian X

    Obsidian X Dork of the moon

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    That isn't very honest, it really should be more like this:

    "in November we are debuting the second chapter of the universally panned Digital Animated series Prime Wars Trilogy…Titans Return."
     
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  14. ProtectronPrime

    ProtectronPrime Subjectively Objective

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    It's a press release to investors, who are easily spooked cattle types. Nobody's gonna put in press material: ' In addition, in partnership with Machinima, in November we are debuting the second chapter of the Digital Animated series that everyone considers a burning piece of mutant dogshit, Prime Wars Trilogy…Titans Return.'
     
    Last edited: Oct 23, 2017
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  15. ZapRowsdower

    ZapRowsdower Offensively Off-brand

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    I'm impressed with your comment. :)  Because Hasbro IS losing money. They're just diversifying enough to offset the losses. For example, we don't hear about the BOYS TOYS profits, likely because they had more losses. Games and Girls Toys tend to do well (i.e. growth), and obviously a great idea to license your brands out (i.e. diversification). Not to mention Hasbro also has a hand in digital/mobile gaming (which I don't see mentioned either). What about their media division?

    Look, just don't be blown away when someone tells you ONLY the positives in their life. Odds are, they are hiding quite a bit of negative. And while that may make them sound more "successful", I find the exclusion of certain details/facts to be quite dishonest.

    Franchise Brands, Hasbro Gaming and Emerging Brands revenues increased led by growth in Nerf, Transformers, My Little Pony, Monopoly, Baby Alive, Furreal Friends, Speak Out and Twister. And our investments in our multi-screen content to commerce and omni-channel retail strategies are building deeper consumer engagement across multiple brand experiences as evidenced by the growth in Transformers and My Little Pony.
    Which part of Transformers had growth: RB, RID, TLK, or TR? Because it looks like Goldner specifically did NOT point out TLK here...(when movie years typically mean explosive growth in the TF toy category :eek: )
    He doesn't give specific numbers, but notice only 2 of the 8 franchises mentioned are for Boys. It's hard to tell what he's saying without some numbers (maybe he's just pimping out brands there...).
    Also, he's incredibly vague about "our investments in our multi-screen content". It sounds like he's just saying that movies sell product, but not specifically that TLK made a big impact. Seriously, it's astonishing he doesn't mention TLK more, and I think there's a reason behind that (it didn't meet expectations).
    Lucky for Hasbro, a new toy line means plenty of product on shelves (i.e. wave 1 gets over-ordered). But we have yet to hear from Hasbro about how badly TR is being distributed right now. There's a mess of customers eager for new product (which Hasbro has manufactured already), but completely unable to purchase it at a local store - that means PROFIT LOSS. Both for the stores and for Hasbro.

    I guess Hasbro is too large to be concerned with demand outrunning their supplies? :confused: 

    SPECIFICALLY, HASBRO: Buying TR figures shouldn't be like winning at the roulette wheel. You literally have a very small chance of finding the newest TR products at your store. When the TR line is doing so well, it's embarrassing to see Hasbro put so much more effort into stocking RB and TLK. :rolleyes2 
     
    Last edited: Oct 23, 2017
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  16. ZapRowsdower

    ZapRowsdower Offensively Off-brand

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    I'd like to know WHICH critics acclaimed the CW series! :lol  Then I could avoid them in the future?

    Well, I mean, you can buy yourself a positive review quite easily, so I'm sure a few critics said it was good.
     
  17. ProtectronPrime

    ProtectronPrime Subjectively Objective

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    You more or less have it. Revenue is generally gross revenue, as in it doesn't take into account expenses. So while gross revenue may be up, profits can be down if the overall operating costs outstrip gains from the additional revenue. In other words, if I make $100, but it costs me $90 to make it, my profits (earnings) are $10. If next year I make $200, but it costs me $190 to make it, then my overall profits did not grow over the year. If the year after that, I make $300, but it cost me $295 to make it, then my profits are showing a decrease over time, and so on.

    Either that, or they're just too big and slow. Hasbro is enormous. While TF is a flagship brand, adjusting logistics even when new demand data comes in likely gets recalibrated very slowly. These guys have to deliver to every mega-outlet in the country. I'm not saying it makes it right - honestly I run into the same problems across all the brands and partner brands that I buy from Hasbro. I really don't have any idea how they operate any of that, but I doubt any company deliberately goes 'Lol Long Hair, Don't Care' at lost markets. I'm sure they'd try for better saturation if they could.
     
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  18. ZapRowsdower

    ZapRowsdower Offensively Off-brand

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    Do you remember when Sony got hacked? It was a big deal. And I'm sure the arguments were the same: they're a big company and they can't see everything...

    But here's a fact: they didn't have a network security specialist on staff. At all. They literally hired someone AFTER the hack.

    Same with Hasbro: they claim TFs are a big part of their business, but the way they track and react to the market... it's embarrassing! I refuse to believe it's impossible to correct! For example, they do have employees that visit stores and take notes on the state of shelves - how much you wanna bet they invest a minuscule amount in this endeavor?

    Either Hasbro is unaware of the poor distribution (yikes), or they just don't care (too expensive, screw it). A smaller company would make more effort, so... I'm disappointed. Especially when they do something like put 2 COGMAN's in a case of 8, so they can put another Barricade and Berserker in there! :banghead: 
     
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  19. Autobot Burnout

    Autobot Burnout A face you can trust! Really!

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    From my understanding, Hasbro makes its money by selling directly to the retailers, who then turn around and sell the toys at a slight markup - so in a sense, Hasbro makes its money even on toys that don't make it off store shelves. Obviously, if the toys don't sell at retail, they don't move from Hasbro to retailers because retailers don't order any more, but that's never seemed to bother Hasbro.
     
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  20. Purple Heart

    Purple Heart Pure Passion

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    That is 100% how it works. You couldn’t have hit the nail any more directly on the head.