Wizards of the Coast (WotC)’s parent company, Hasbro, has shared their Third Quarter 2022 report and despite net revenues dropping, Magic: The Gathering became the company’s first $1 Billion brand.
With revenues down 15 percent year-over-year and a 47 percent decline in operation profits, Hasbro CEO Chris Cocks pointed to inflation and high levels of inventory as the main causes for the third quarter drop.
WotC still boasted $102.2 million in operating profits, but that number is down 36 percent. The third quarter financial results report cited higher product cost and incremental royalty expense with the new Universes Beyond sets as factors for the quarter. With MTG Universes Beyond products featuring Transformers, Lord of the Rings, and Dr. Who all on the horizon and Warhammer 40,000 Commander Decks releasing this month, this is the first mention of the costs associated with blending IPs.
Magic: The Gathering is still going strong, however, and Cocks is projecting Hasbro’s fourth quarter revenue to be approximately flat versus last year in part to the strength of MTG. “Growth will be driven by what we expect to be one of the biggest fourth quarters for Magic: The Gathering as we kick off the brand’s 30th anniversary and celebrate Hasbro’s first ever $1 billion brand,” Cocks said.
With The Brothers’ War and Magic 30th Anniversary Edition coming out later this year, Hasbro expects operating profit Margin for WotC to be at or above 40 percent for the fourth quarter, down from 42.5 percent from 2021’s fourth quarter.
Read the Third Quarter Financial Results press release.