Hasbro and Wizards of the Coast released their Q1 2023 financial earnings report, and even though sales were up, profits are way down…
2022 was a banner year for Hasbro and WotC. However, it looks like 2023 is not running quite as smoothly for the company. While sales were up, profits have taken a big hit and in part due to local currency fluctuation throughout the globe.
The sales, though, for the gaming and digital gaming wing of the company were up 12%, from $262.8 million in Q1 2022 to $295.2 million in Q1 2023. Tabletop games led the charge and were up 13% to $217.9 million from $192.2 million last year. Meanwhile, digital and licensed gaming was up 9%.
Hasbro & Wizards of the Coast Sales Up But Profits Down
The info comes from the Hasbro investor report.
As you can see, the operating profit is down 67% from last year. This significant issue is attributed to investments in product development and personnel, higher product costs, advertising expenses, and currency changes. Magic sales were up 16% and made up a large portion of sales.
The WotC profits were more or less flipped from last year, with profits going from +12% to being down nearly 30%. They say this is to help with the long-term growth of the games, and they are investing a lot of last year’s profits into growing the games.
Overall, tabletop game sales were up 13%, Magic was up 16%, and Dungeons and Dragons also increased by 13% in the quarter. So, overall, the sales are still growing, but they are reinvesting more, and with the other issues, profits are way down.
Last but not least, many of the partner brands and portfolio brands were running at a loss.
What do you think about the Q1 financial report from Hasbro and Wizards of the Coast?
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About the Author: Travis Pasch
Travis Pasch
Job Title: Head Writer & Editor
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About Travis Pasch: Travis has been a Warhammer 40k hobbyist since the 1990s, playing the game since Third Edition. Through extensive traveling, he’s seen a lot of the miniatures hobby from across the world, giving him a unique perspective on the latest gaming topics and trends.
Travis’s brother even owns a commission painting studio, where he’s picked up a lot of good advice and techniques for painting Warhammer and tabletop miniatures over the years, as well. Travis joined the Spikey Bits team in 2019 and has been the lead writer since 2020.
Currently, he’s working on converting all his 40k Adeptus Mechanicus models and becoming a true tech enjoyer, complete with both sad and happy robot noises!
