Toy and game company Hasbro swung to a net loss as annual revenue declined amid lower performance in the consumer products and entertainment segments.

The company booked an attributable net loss of $1.49 billion as revenue fell 15 per cent to $5 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) narrowed 39.5 per cent to $709.4 million.

Revenue dipped 19 per cent in the consumer products segment due to business exits, category trends and inventory management.

The entertainment segment’s revenue tumbled 31 per cent attributed to falling film and television revenue due to the writers’ and actors’ strikes.

On the other hand, Wizards of the Coast and digital gaming segment’s revenue rose 10 per cent driven by an increase in licensed digital gaming revenue behind Baldur’s Gate III from Larian Studios and Monopoly Go! from Scopely.

“2023 was a productive year for Hasbro, although not without some challenges,” said Hasbro CFO Gina Goetter.

“As we navigated the current environment, we took aggressive steps to optimize our inventory, reset the cost structure, and sharpen our portfolio focus on play with the EOne film and TV divestiture.”

Goetter added that the company’s initiatives position it for improved financial performance this year.

For this year, the company forecasts adjusted EBITDA of $925 million to $1 billion.

Its consumer products segment revenue is estimated to decline 7 per cent to 12 per cent while Wizards of the Coast revenue is expected to fall by between 3 per cent and 5 per cent.

The company also anticipates pro-forma entertainment segment revenue to be down by $15 million.