Hasbro 2010 Annual Report Download - page 4

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2010 Accomplishments
When we began 2010, we shared with you our vision
to continue re-inventing, re-imagining and re-igniting
the industry’s broadest portfolio of world-class brands.
We understood that in order to drive top-line growth,
we needed to deliver growth from brands across our
portfolio following our very strong performance in
2009, which was driven by two major motion pictures.
It was also another year of operating in a challenging
and tumultuous global economic environment.
For the year, the Hasbro team globally
achieved many milestones:
• Revenue was $4.00 billion versus $4.07 billion
in 2009; international segment revenues
increased 7% with growth in all major product
categories and regions, including in the
emerging markets; we grew revenue in both the
Girls and Preschool global product categories
and we increased share in many categories.
• Each of our product categories had brands
which grew. NERF became our largest
brand in 2010, growing more than 50% to
$414 million; FURREAL FRIENDS more than
doubled its revenue in 2010; PLAYSKOOL,
through the re-introduction of ALPHIE and
WEEBLES, grew along with PLAY-DOH and
TONKA; as did several re-imagined games
brands, including MAGIC: THE GATHERING,
SCRABBLE, CUPONK and BOP-IT.
• Operating profi t margin increased to
14.7% of revenues, its highest level in
25 years; net earnings reached a record
level and earnings per share increased
for the 10th consecutive year.
• We continued making strategic, long-
term investments which position us for
growth and success in the future; and
• We returned cash to you, our shareholders,
buying back 15.8 million shares of common
stock at a total cost of $636.7 million and
returning $133 million via our quarterly
cash dividends. In February 2011, our
Board voted to increase our quarterly
dividend rate by 20% to $0.30 per share.
Hasbro’s Brand Blueprint
Over the past several years, we have shared with
you our brand blueprint. A very signifi cant result
of the blueprint is the development of immersive
brand experiences for our global consumers
not only through Hasbro Toys & Games, but in
entertainment with motion pictures, television and
online; in digital gaming; and in lifestyle licensing.
In 2010, our entertainment initiatives took an important
step forward. On October 10, 2010, Hasbro and
Discovery Communications launched The HUB in
the U.S. under the leadership of industry veteran,
Margaret Loesch, and her team. We couldn’t be more
pleased with the quality of programming and the initial
results we are seeing with The HUB. Shows based
on our brands and produced by Hasbro Studios are
leading the way with respect to ratings on The HUB.
We set out to establish a destination that brings kids
and their families together to enjoy clever stories and
engaging characters. In the early months of being on
air, The HUB has been the leading co-viewed network of
all kid cable networks with Kids 2-11 and Adults 18-49,
meaning the network boasts the highest percentage
of kids watching television with their parents.
Building a successful television network is a long-
term endeavor and we have only just begun. We are
pleased with the ratings progress overall since the
launch. We believe the investments being made in
marketing the channel are working. Furthermore, we
are encouraged by The Hub’s early studies that show
it is beginning to rival some competitive networks in
terms of unaided awareness, for kids as well as parents,
and garners strong recommendations from those
already watching. As a result, the number of advertisers
is growing, most of whom had never advertised on
The HUB’s predecessor channel, Discovery Kids.
To support the launch of The HUB, we invested over
$50 million in television program development at our
wholly-owned Hasbro Studios, dedicated to making
quality programs based on Hasbro brands. This resulted
in 335 half-hours of programming for Season One of The
HUB and for distribution in the international markets. In
2010, Hasbro Studios produced a number of the highest
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