Wizards of the Coast (WotC) owner, Hasbro, has released its third quarter report for 2022 and despite their overall revenue being down, it's clear that Magic The Gathering will be their first product to reach a billion dollars in sales.
With a 15% drop in revenue and a whopping 47% in operating profit, Hasbro's CEO Chris Cocks believes that inflation and large amounts of tied up inventory are behind the third quarter's loss.
WotC still boasted $102.2 million in operating profit, despite a 36 percent loss. The third quarter earnings report cited higher product costs and increased royalty costs with the new Universes Beyond sets as factors. With MTG Universe's Beyond products featuring Transformers, Lord of the Rings and Dr. Who on entry and recently released Warhammer 40,000 Commander Decks, this is the first mention of costs for IPs.
However, Magic: The Gathering remains strong, and Cocks expects Hasbro's fourth-quarter revenue to be roughly flat from last year, in part due to MTG's strength. "Growth will be driven by what we expect to be one of the biggest fourth quarters for Magic: The Gathering as we kick off the brand's 30th anniversary and celebrate Hasbro's first ever $1 billion brand," Cocks said.
With The Brothers' War and Magic 30th Anniversary Edition coming out later this year, Hasbro expects the operating profit margin for WotC to be at or above 40 percent for the fourth quarter, down from 42.5 percent from 2021's fourth quarter.
