(Reuters) -Toy maker Hasbro Inc on Tuesday raised its full-year profit forecast after beating Wall Street estimates for quarterly revenue, bolstered by a jump in demand for tabletop games “Magic: The Gathering” and “Dungeons & Dragons”.
Demand for role-playing and video games surged during the COVID-19 pandemic and has remained strong even as restrictions were eased, helping Hasbro maintain strong sales volumes despite price increases.
The success of the unit that houses “Magic: The Gathering” and “Dungeons & Dragons” has also drawn the attention of activist investor Alta Fox Capital Management LLC, which is pushing Hasbro to spin-off the business.
Hasbro said it faces a potential revenue hit of about $100 million this year due to Russia’s invasion of Ukraine.
The Monopoly maker’s net revenue rose 4% to $1.16 billion in the first quarter ended March 27, beating estimates of $1.15 billion, according to Refinitiv IBES.
It expects fiscal 2022 operating profit to rise in the mid-single digits, compared with its previous forecast of a low-single digit increase.
(Reporting by Uday Sampath in Bengaluru; Editing by Amy Caren Daniel)
