Hasbro swung to a profit in the second quarter as revenue fell 18 percent due to the divestiture of eOne.

The gaming company reported a profit of $138.5 million, after posting a loss of $235 million a year ago, beating Wall Street expectations. The company reported $40 million of net cost savings and approximately $90 million year to date. Hasbro also raised its full-year guidance.Shares of Hasbro were up 8% in pre-market trading Thursday.

The $50 million sale of the entertainment company to Lionsgate was completed in December 2023. With the loss of eOne, which has produced titles such as Dungeons Dragons: Honor Among Thieves and The Woman King, the companys entertainment revenue segment also saw its revenue fall 90%. Net revenue fell to $995.3 million, down from $1.21 billion a year ago.

Within the entertainment unit, Hasbro has the upcoming launch of Transformers One, which is scheduled to come to theater this September in partnership with Paramount.

In the Wizards of the Coast and Digital Gaming Segment, revenue increased 20% year-over-year due to the launch of MAGICS Modern Horizons 3 set and strength in the licensed and digital gaming revenue behind Monopoly Go!, Baldurs Gate 3, as well as a benefit from an international publishing deal.

That growth was offset by a 20 percent decline in consumer products revenue and the drop in revenue in the entertainment segment.

We delivered a solid performance in games and digital licensing and substantial margin improvement this quarter, said Chris Cocks, Hasbros CEO. Hasbro is emerging as a more profitable, agile, and operationally excellent company delighting fans of all ages through the magic of play.