Toy and game company Hasbro has swung to net profit for the first quarter of FY24 despite posting a decline in revenues.

For the three months ended March 31, net revenues were down 24 per cent to $757.3 million. Excluding the divestiture of its EOne film and television business, revenues decreased 9 per cent.

Sales of the consumer products segment dropped 21 per cent $413 million, driven by broader industry trends, exited businesses and reduced closeout sales. 

The digital gaming segment saw revenue decrease 7 per cent, while the entertainment segment’s sales fell 85 per cent due to the divestiture.

On the bottom line, the company swung to net earnings of $59.1 million from net loss of $21.7 million in the year-ago period.

“The first quarter was a good start to the year for Hasbro; we are continuing to see the results of our transformation work,” said Chris Cocks, CEO of Hasbro.

“Performance from our licensing portfolio shows the strength of our brands and we continue to fuel innovation in games and toys as we expand our reach across play patterns to fans of all ages.”

For the full year, the company continues to expect revenue decline of 7-12 per cent for the consumer products segment, as well as mid-single-digit decreases for other segments.