Hasbro Reiterates TV Joint Venture To Add To 2011 Earnings
February 08 2010 - 10:23AM
Dow Jones News
Hasbro Inc. (HAS) reiterated its expectations that its joint
venture to launch a children's television network will hurt
earnings in 2010 by 25 to 30 cents a share and will begin adding to
earnings in 2011.
During a conference call Monday with investors, Chief Financial
Officer Deborah Thomas said the joint venture, with Discovery
Communications Inc. (DISCA), had hurt earnings by 3 cents a share
in the fourth quarter and 12 cents a share for the full year
2009.
Hasbro had said the up-front TV work would cut 2009 earnings by
up to 14 cents a share, including a 4 to 5-cent hit in the fourth
quarter.
Hasbro and Discovery Communications are expected to rebrand
Discovery's Discovery Kids network this fall with a new programming
lineup that will include some shows based on Hasbro brands, such as
My Little Pony, some Discovery Kids programs and some third-party
shows.
Earlier Monday, Hasbro reported fourth-quarter earnings rose
77%, smashing analysts' estimates, as strong sales of boys' items
and games and puzzles aided results. The No. 2 toy maker also said
it should be able to grow revenue and earnings this year, even
including the negative impact on profits from the joint
venture.
Hasbro shares jumped 12.37% to $34.61 in recent trading.
-By Mary Ellen Lloyd, Dow Jones Newswires, 704-948-9145;
maryellen.lloyd@dowjones.com