Hasbro is increasing its full-year revenue and profit guidance after strong performance from its Wizards of the Coast and digital gaming businesses helped offset softness in toys and entertainment.

The gaming, IP, and toy company reported a 7 per cent increase in year-to-date revenue for this year, driven by a 28 per cent jump in its Wizards segment, fueled largely by sales from Magic: The Gathering.

CEO Chris Cocks attributed the momentum to the company’s “Playing to Win” strategy.

“We delivered record-setting results from Magic, alongside strong contributions from our games portfolio, licensing partnerships, and digital initiatives,” says Cocks. 

“With this, we’re increasing our full-year outlook and positioning Hasbro for sustained growth in 2025 and beyond.”

Revenue for the second quarter declined just one per cent as gains in digital gaming and tabletop were nearly offset by expected declines in consumer products. 

Magic: The Gathering revenue rose 23 per cent in the quarter, driven by its Final Fantasy set, the largest release in the brand’s history. Monopoly Go! also contributed $44 million in quarterly revenue.

However, the company recorded an operating loss of $798 million in Q2, primarily due to a $1 billion non-cash goodwill impairment in the consumer products segment.

Excluding the impairment, adjusted operating profit was flat at $247 million.

“We are raising our full-year revenue and adjusted EBITDA guidance, fueled by performance in our Wizards business,” added Gina Goetter, Hasbro CFO and COO.

“Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook.”

Segment performance was mixed. Consumer Products revenue dropped 16 per cent in Q2 due to expected softness in toys tied to retailer order timing and geographic volatility, while entertainment revenue declined 15 per cent.

Hasbro says it expects total sales this year to rise in the mid-single digits, with an adjusted operating margin of 22 to 23 per cent and adjusted EBITDA (earnings before interest, taxes, depreciation and appreciation) between $1.17 billion and $1.20 billion. 

“Our capital allocation priorities remain to invest in the core business; strengthen its balance sheet and progress towards its leverage target; and return cash to shareholders,” the company added.