Hasbro (NASDAQ: HAS) defended his approach around the Magic: The Gathering game at a UBS business conference on Thursday.
The toy company was sued by Bank of America as part of a double takedown by the company in October print multiple color cards. BofA’s research team said it spoke to a number of players, collectors, retailers and local game stores and noted a growing frustration with trading card games that generate about 15% of Hasbro’s revenue and 35% of its EBITDA. Analyst Jason Haas said the biggest concern he heard was that Hasbro (He is) has been increasing the number of Magic cards that have helped in recent results, but at the expense of the brand’s long-term value.
On Thursday, Hasbro ( HAS ) CEO Cynthia Williams said those concerns were unfounded because there were no signs of a waning interest in toy products. He said the company usually publishes its tentpole Magic: The Gathering card sets every two months, but internet issues have caused two sets to be released simultaneously in the past. A regular release schedule is expected in 2023 where major sets are released every two months and smaller sets are released in between.
“Like any other collectibles market, some products and cards are more accessible than others and trends can change over time due to the influx of foreign products, many unrelated to the number of cards,” he said.
Also related to the Magic brand, Hasbro (HAS) CEO Chris Cocks said at the UBS conference that the higher paper money resulted in higher prices for almost half of the line.
Seeking Alpha authors have broken down Hasbro with the last three articles producing a Strong Buy rating, a Hold rating, and a Sell rating.