Oct 20 (Reuters) - Hasbro raised annual revenue forecast on Tuesday, betting on strong demand for its digital games, including "Magic: The Gathering", ahead of the crucial holiday season.
The Play-Doh maker has posted consecutive gains in its digital gaming segment over the past seven quarters, while an increase in sales of collectibles linked to Marvel, K-Pop Demon Hunters and Transformers have boosted demand for traditional toys.
Revenue in its Wizards of the Coast and Digital Gaming segment rose 31% during the third quarter, while consumer products segment was up 4% from a year ago. The company's shares were up 1% in premarket trading.
The toymaker expects fiscal 2026 revenue to grow in the range of 7% to 9% on constant currency basis, compared with its prior forecast a 5% to 7% rise.
Hasbro has benefited from its investments in digital gaming, product innovation in key franchises and strategic partnerships, while rival Mattel has come under investor pressure to better monetize its intellectual property.
Quarterly revenue of Hasbro stood at $1.60 billion, compared with analysts' average estimate of $1.48 billion, according to data compiled by LSEG.
Its quarterly adjusted operating profit was up 52% at $541 million, including about $55 million of tariff refunds.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi Majumdar)
