Another Day, Another Dollar. Hasbro held their 2015 Q3 Earning Conference Call yesterday and things are looking bad for the Transformers toy business. It’s so bad that Hasbro had to make up for the loss with other brands.
To sum things up which was told yesterday to the press where TFW2005 also attended:
- Hasbro confirmed the 10 Year Plan for the Transformers Live Action Movie Franchise; which they casually let us know during the MIPJunior Conference 2015.
- Noticeable loss in profit for the Transformers toyline.
- A journalist stated that the Retailer Shelf Space allocated to the Transformers toyline is getting smaller and smaller.
- Transformers 5 details to be officially revealed soon?
You will find the exact statements told and several relevant presentation slides, after the jump
Hasbro CEO Brian Goldner stated:
“Over the first nine months of the year, Franchise brands were up 8% absent FX. Transformers was down given the difficult comparison and Littelest Pet Shop was flat, despite growth in the U.S. The other five Franchise brands each reported growth in constant currency in the nine months period.”
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“Play-Doh’s creative play continues to appeal to global consumers. We celebrated the first-ever World Play-Doh Day on September the 16th and we are supporting new fall initiatives, including Crazy Cuts and Cupcake celebration. The growth in these brands helped offset the decline in Transformers.
Last year the brand benefited from the Transformers: Age Of Extinction film. We continue to plan the future of Transformers Franchise in all forms of entertainment, including movies, television and digital expressions.
Transformers: Robots in Disguise is airing on Cartoon Network in the U.S. and many international markets and Transformers: Rescue Bots is also airing on networks around the world.
Last quarter we spoke with you about the incredibly talented group of writers led by Akiva Goldsman, who were charged with plotting out the next 10 years and beyond of theatrical story telling around Transformers. While Paramount has yet to formally announce our next film, we are excited about the vast potential of the work, which came out of the writers’ room.”
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“Finally, revenues in the Entertainment and Licensing segment were down 2% versus 2014. The decline in revenue was primarily driven by lower Transformers revenues in the segment the year after the movie.”
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Journalist Eric Handler asked the following question from Mr. Goldner during the Q&A Session:
“And then secondly with Transformers, tell me if I’m wrong but it just seems from an observation standpoint, the shelf space for Transformers has been shrinking or seeing for us fewer SKUs. I’m just curious to think, get your opinion on how that products evolution will take place over the next couple of years and not at least in non-movie years?”
To which the following answer was given:
“Yeah. First, let’s talk about Transformers. Year-to-date Transformers is actually bucking the trend of a typical boys action property the year following the movie. In fact, it’s down by just over a third, which as you know is far better than one would expect in a non-movie year, and that’s because the amount of entertainment.
We’re also seeing in our preschool Transformers, growth year to date in Preschool Transformers are Transformers rescue bots product line and being supported again by content. Our licensing year-to-date for Transformers is up. So I think maybe we need to take a broader perspective on the performance of Transformers and look more globally because it’s performing quite well and in non-movie year, certainly it’s down in the quarter and down more typical in the more typical range in the quarter.”
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