By Dhirendra Tripathi

Stock of Investing.com Hasbro (NASDAQ:) rose 2.2% Monday in premarket trades. This was because the company beat earnings and revenue estimates during the fourth quarter. It also raised its dividend by 33%.

The fourth quarter net revenue increased 17% to $2Billion

Consumer products, the company’s core toys and games business, grew 9% in revenue, led by products for the Marvel portfolio, as well as key Hasbro brands like Transformers and Play-Doh. All regions saw an increase in revenue. Ecommerce revenues grew by 10% to $1.3Billion, which is 29% of Hasbro’s total game and toy revenue.

Due to price increases that more than offset higher freight costs and distribution expenses, the operating margin for the consumer product business also increased.

Revenue at the entertainment segment, the smallest of the company’s three business lines, grew the most, by 54% to near $380 million. The company relaunched the ‘My Little Pony’ brand with an animated feature film on Netflix (NASDAQ:).

Wizards of the Coast exceeded $1 billion in revenue, successfully doubling two years ahead of the company’s target. Digital gaming revenue grew thanks to successful releases like ‘Magic: The Gathering’ and continued growth in ‘Dungeons and Dragons’ franchise.

Although net earnings were lower due to advertising costs and higher royalties, adjusted profit per share was above estimates.

Hasbro is now forecasting growth of “low-single digit” in both annual revenue and operating profit this year. The company recently lost the rights to produce Cinderella and ‘Frozen Dolls’ and other toys based on Disney’s princess lineup to Mattel (NASDAQ:).

Company hopes to resume its share purchase program in 2023’s second quarter or sooner. The company has $367million left over from an earlier exercise.