Hasbro beats quarterly estimates on strong demand for its digital games

May 20 (Reuters) – Hasbro on Wednesday reported first-quarter revenue and profit above estimates, aided by strong demand for its digital games such as “Magic: The Gathering”, after a cybersecurity incident pushed back its results.

The Play-Doh maker had forecast its preliminary first-quarter results last month after identifying unauthorized access to its network in late March. Hasbro had also released unaudited quarterly results in a regulatory filing last week.

Strength in the company’s digital gaming business has helped it counter softened demand for traditional toys due to lower consumer spending on non-essentials amid high living costs.

Quarterly revenue in its Wizards of the Coast and Digital Gaming segment rose about 26%. It had risen 46% in the year-ago quarter.

Partnerships with popular online shows and films, including the tie-up with Netflix to make toys and card games linked to the popular “K-Pop Demon Hunters” movie, also helped boost sales. 

The company reported quarterly revenue of $1 billion, compared with analysts’ average estimate of $964.38 million, according to data compiled by LSEG.

It had forecast preliminary sales between $970 million and $985 million on April 23. 

Hasbro also reported adjusted earnings per share of $1.47, beating analysts’ estimate of $1.13, helped by the strong demand as well as cost-saving initiatives. 

The company, which sources roughly half of its U.S. merchandise from countries such as China, Vietnam, India and Japan, said it recorded $8.3 million in U.S. import tariff costs, and said that it is evaluating means to obtain refunds following the Supreme Court ruling against the duties.

Hasbro reaffirmed its annual forecast from February.

(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Devika Syamnath)