Hasbro CEO on Oil Costs, Video Games and New Projects

Summary

Hasbro CEO Chris Cocks addresses investor concerns about oil exposure, emphasizing that the business is shifting toward games and digital. He highlights strong growth in Magic: The Gathering and other GEM Squared categories, and views the recent stock drop as a buying opportunity. The company's oil cost headwinds are quantified as manageable within its diversified operations.

• Hasbro's exposure to petroleum is described as relatively light, with games and digital making up the majority of business and growth.
• Magic: The Gathering has grown 16% annually over ten years and over 20% in Q1.
• The CEO sees a down day in the stock as a buying opportunity due to structural advantages.
• A $10 increase in oil prices creates about a $30 million cost headwind, manageable versus $1.4-1.45B EBITDA.
• Upcoming movie slate includes Star Wars, Toy Story, Spider-Man, and Avengers, expected to support toy sales.
• Monopoly Go delivers licensing revenue equivalent to two blockbuster movies per year as an annuity.
• Hasbro is diversifying into digital games, licensing, and first-party publishing.
• Guidance projects mid-single-digit revenue growth with strong profit margins.