Hasbro 2008 Annual Report Download - page 4

GROWTH ACROSS CATEGORIES
Our focus on core brands, supported by continued investments in marketing and product development, drove full-year
revenue growth of 5% with solid gains in the Boys, Girls, Preschool and Tween categories. Behind strong brands and
new innovation, our board games grew as well.
Driven by core Hasbro and key licensed brands, our Boys business grew 6% in 2008 to $1.1 billion. TRANSFORMERS
remained very strong in 2008 and exhibited the lowest percent revenue decline in the year after a movie of any of
our boys’ entertainment properties launched in the last ten years. It is a strong position upon which we can build. In
2009, Hasbro teams with DreamWorks and Paramount Pictures for the second fi lm of the TRANSFORMERS franchise,
Transformers: Revenge of the Fallen. The sequel to the tremendously successful 2007 fi lm delivers on-screen action with
the same great cast and three times the number of robots as the original, all backed by innovative product and global
retail execution.
In 2009, Hasbro is also partnering with Paramount Pictures for the global theatrical debut of G.I. JOE in G.I. Joe: The
Rise of Cobra. Together, these fi lms showcase the potential of Hasbro’s brands as they come to life in movie theatres
around the world.
In our licensed brands, we will continue to leverage strategic relationships with Lucas and Marvel for the better part of
the next decade.
Lucasfi lm and Hasbro have a rich and successful history and this relationship will continue at a minimum through
2018. In 2008, Lucasfi lm made the transition to television with the very successful animated series, Star Wars: The Clone
Wars on Cartoon Network. Supported by this innovative and exciting new entertainment, Hasbro’s Star Wars line delivered
signifi cant growth in 2008. Star Wars: The Clone Wars will serve as a foundational element for both Lucasfi lm and Hasbro
in the coming years, and Lucasfi lm has made a long-term commitment to animation, with studios currently operating in
Marin County, CA and Singapore. The second season of the hit animated series will debut in Fall 2009.
Marvel brands, supported by theatrical releases of IRON MAN and THE INCREDIBLE HULK, as well as continued
animation for SPIDER-MAN, also continued to perform very well for Hasbro in 2008. In 2009, we are bringing to market
a line of products based on the release of the movie, X-Men Origins: Wolverine, as well as great classic lines based on
SPIDER-MAN, IRON MAN, SUPER HERO SQUAD and the MARVEL UNIVERSE.
With two successful years of our initial fi ve-year deal completed, Hasbro and Marvel announced in early 2009 that
Hasbro has retained the rights through 2017 to make toys and games based on new Marvel theatrical releases,
Columbia Pictures SPIDER-MAN theatrical releases, and on Marvel’s globally popular portfolio of Super Hero brands. We
are excited about the tremendous potential Marvel’s universe of more than 5,000 characters and SPIDER-MAN’S fi lm and
television properties provide Hasbro.
Our Girls category once again delivered strong results, growing 13% to $791 million in 2008 and continuing the rapid
expansion of Hasbro brands with girls that began in 2000 when annual revenues were less than $60 million. LITTLEST
PET SHOP is a cornerstone of our girls offering and led these gains in 2008 with a 26% increase in revenue.
In 2009, core Hasbro brands provide the foundation for our Girls line. First, girls will reconnect with collecting with
LITTLEST PET SHOP. Second, we are bringing to market new, re-invented lines of MY LITTLE PONY and BABY ALIVE.
Third, FURREAL FRIENDS delivers realistic “come to life” animal experiences including ZAMBI THE BABY ELEPHANT, a
special edition plush toy whose sale will help children who have been orphaned by AIDS in Africa. Finally, STRAWBERRY
SHORTCAKE, from American Greetings, makes a return to our lineup with a whole new entry in 2009.