Hasbro: MTG has 16% Q1 revenue increase, "higher-than-expected performance"

Earlier in the year, reports weren't looking great for Hasbro. After the company revealed they were lowering their expected numbers for the turn of the quarter, many experts affirmed this could mean there would finally be consequences for a downward trend in toy-purchases registered as early as fall 2022, as the initial post-pandemic boom wore off. The rumored recession coming for the U.S. was also quoted as one of the reasons for a decrease in numbers for companies in 2023.

But, to everyone's surprise and, I daresay, delight, Magic: The Gathering has confirmed to have brought a 16% increase in numbers this year for Hasbro compared to 2022. The information was detailed on a conference call on April 27th.

In that same conference call, in which many other numbers were detailed for the company's Q1 reports, one of the main reasons quoted for the success of Magic: The Gathering was Phyrexia: All Will Be One, which had a "higher-than-expected performance". Additionally, other sets are still pulling numbers, namely Modern Horizons 2, which became MTG's first $200 million set for the 2023's first quarter.

There's also an increase in interest for Universes Beyond sets, as Warhammer 40k Commander decks were pointed out to be "one of their best-selling Commander decks ever., which might justify how they are in their fourth reprint*.

To add to the mix, one fact that is a surprise to no one, the MTG Lord of the Rings set was said to be "one of the most successful pre-orders ever".

For now, future investments and Magic: The Gathering seem to be what is keeping Hasbro afloat, as other numbers don't look so promising for the company. An overall considerable decline in revenue spans across the board for all categories, including renowned franchise brands such as Nerf, Play-Doh and Peppa Pig.

Another factor pointed as to why there are such small declines in operating profit is due to investment made in Wizards' "personnel, organized play events, and marketing for upcoming releases". With an overall increase in net revenue of 12%, however, it seems that marketing is paying off for categories such as Digital Gaming and the Wizards of the Coast domains.

Nonetheless, they still expect numbers to drop throughout the year:

With such big upcoming events such as the Lord of the Rings set, the release of the DnD Movie and the related products with it, such as the Secret Lair, and the newly announced Mattel Partnership, however, the total final numbers might still remain a mystery until the next two quarters are over.