UPDATE 2-Hasbro raises annual forecasts on digital gaming demand, 'Magic' boost

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Hasbro, Inc.

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Adds graphic, details in paragraph 5, updates shares

- Hasbro HAS.O raised its annual revenue and profit forecasts on Tuesday, betting on resilient demand for its digital gaming business and continued strength in "Magic: The Gathering" despite an uncertain consumer spending environment.

The company also beat second-quarter sales and profit estimates, as its flagship "Magic" franchise fueled a 27% rise in revenue at its Wizards of the Coast and Digital Gaming unit. In the year-ago period, the unit recorded 16% growth.

Stronger spending by higher-income consumers helped Hasbro offset demand pressure from lower-income households facing persistent inflation.

"With strong indications for our remaining releases and line of sight to continued growth in 2027, the Magic flywheel is firing on all cylinders," CEO Chris Cocks said.

Hasbro launched the "Secrets of Strixhaven" series in April and plans to release its "Marvel Super Heroes" title later this year.

Some analysts, however, had questioned whether the franchise can sustain recent growth as second-half comparisons become tougher.

Shares of the company, which also makes "Dungeons & Dragons" games, were marginally higher in premarket trading.


The Play-Doh maker now expects annual revenue to grow in the range of 5% to 7%, compared with its prior forecast of 3% to 5%. It sees annual adjusted core profit between $1.45 billion and $1.50 billion, compared with the previous outlook range of $1.40 billion to $1.45 billion.

Second-quarter revenue rose 16% to $1.14 billion, topping analysts' estimates of $1.07 billion, according to data compiled by LSEG.

The company's quarterly adjusted profit fell 1.5% to $1.28 per share. Analysts had estimated a profit of $1.14 per share.

Hasbro said it incurred $11 million in incremental expenses in the quarter from a cybersecurity incident that occurred in March, and expects additional related costs in the future.