Hasbro raises annual forecasts on digital gaming demand boost

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

Revenue in the Wizards of the Coast and Digital Gaming segment rose 27% in the quarter ended June 28, compared with a growth of 16% in the year-ago period.

July 21 (Reuters) - 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 benefited from momentum in its Wizards of the Coast and Digital Gaming unit, driven by the flagship "Magic" franchise. At the same time, stronger spending by higher-income consumers helped Hasbro counter demand pressure from lower-income households due to 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.

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.