Deborah M. Thomas
Executive Vice President and Chief Financial Officer at Hasbro
Good morning, everyone. As Rich said, we're incredibly proud of the performance by the Hasbro team over the past several months to turn in an outstanding year. This includes full year double-digit growth in revenue, operating profit, earnings, and adjusted EBITDA. We grew revenue across segments, brand portfolios and geographies. Wizards and Digital gaming had its best year ever, doubling the size of the Wizards business two years earlier than anticipated. We further the integration of eOne, launching new increasingly Hasbro brand-led content campaigns, as well as Hasbro's line for Peppa Pig and PJ Masks. We remain on track to achieve the $130 million run rate of cost and in-sourcing synergies by the end of this year.
We strengthened our balance sheet, paying down over $1 billion in debt, ending the year with over $1 billion in cash and after reducing our debt to adjusted EBITDA last year by 1.7 times, to 3.1, we are on track to hit our target of 2 to 2.5 times by year end 2023, and we invested across Hasbro to profitably grow for the long term while returning cash to shareholders, including a 3% increase in the quarterly dividend announced today and effective with our next dividend payment in May.
Our 2021 results and current year outlook support our view to growth and value creation over the coming years. For the year, revenue grew 17% year-over-year and 8% versus pro forma 2019. Magic: The Gathering, Nerf, Peppa Pig, My Little Pony, Transformers and Hasbro products for the Marvel portfolio led year-over-year growth, along with the return of entertainment production and deliveries, notably in TV streaming and animation.
The Wizards of the Coast and Digital Gaming segment had a phenomenal year, growing revenue 42%, operating profit 30%, ending the year with an operating profit margin of 42.5% and adjusted EBITDA was higher by 36%. We had success in both tabletop and digital gaming, led by Magic: The Gathering and Dungeons & Dragons. We have significantly invested to drive these brands for current and future growth. Consumer products segment revenues grew 9% year-over-year. Robust demand for Hasbro products, strategic pricing action and significantly improved execution in markets like Latin America and Asia drove a 170 basis point operating margin expansion, more than offsetting the higher freight and input costs, as well as supply chain challenges incurred during the year.
Adjusted EBITDA grew 18%. The team managed supply and delivered strong revenue growth, but our product in-stock levels was lower than target. Part of this was due to demand above our plan and part due to continuing supply chain disruption. To help us maintain consumer product segment operating profit margins at or above 2021 levels, we have price increases scheduled to take effect in the second quarter, to offset the anticipated continuation of supply chain challenges and resulting higher input and freight costs.
Entertainment segment revenue increased 27% for the year, exceeding 2019 pro forma levels of revenue when adjusted for the sale of the music business. Adjusted operating profit grew 13% and adjusted EBITDA increased 76% for the full year 2021. Adjusted operating profit increased due to higher revenue and lower administrative costs, partially offset by higher program cost amortization associated with more deliveries, the mix of content and higher overall costs related to COVID.
Overall, adjusted operating profit grew 20% and operating profit margin expanded on a favorable mix of revenues, strategic pricing which partially offset higher costs at the same time, investing in product innovation and advertising behind brands and entertainment. On a reported basis, other income expense net included a $54 million pre-tax, non-cash, non-operating charge associated with our investment in the Discovery Family Channel. The pandemic has accelerated changes in the cable distribution industry and networks have seen a decline in linear subscribers. During the over 10-year life of our investment, we recorded more than $1.1 billion of merchandise revenue related to Hasbro programing on the channel, averaging more than $100 million per year.
Since reducing our ownership from 50% to 40% in 2014, we've recorded approximately $130 million of non-operating investment income or an $18.5 million annual average. This investment has delivered a strong return for Hasbro. Turning to tax, the full year underlying tax rate with non-GAAP charges and discrete items was 21.3%, the lower adjusted rate of 15.8% was the result of favorable discrete items from audit settlements, synergies from the integration of eOne and tax planning.
For 2022, our underlying rate absent non-GAAP charges and discrete items is expected to decline to approximately 20.5% with an adjusted rate expected in the 18% to 20% range, as we do not predict the same level of favorable discrete items we had in 2021. As I said at the start, our balance sheet is strong, accounts receivable increased 8% versus 17% revenue growth as collections remained strong. After declining 17 days last year, DSO declined another six days to 68 days, with improvement across Hasbro, led by our Entertainment business and international commercial markets. The Inventory we had at year-end is very high quality, our aged inventory is well below historical levels, but the levels we have on hand at retail are higher than last year. For both owned and retail inventory, this reflects a significant increase in the amount of inventory in transit as lead times from China have increased about three times on average.
Hasbro owned inventory also reflects higher freight and product costs. These higher capitalized costs are expected to have a negative impact on gross margin in the first quarter prior to price increases taking effect. For 2021, we reported an adjusted EPS of $5.23 per share. As you think about 2022 EPS, I want to walk through several items. First, as a reminder, in the first quarter of 2021, we realized a non-operating gain of $25.6 million from a legal settlement. This translated to $0.19 per share in Q1 2021 and this will not have a comp in the current year. Second, we settled the eOne Music business in Q3 of last year. This represented $65.2 million in revenue and $16.9 million in adjusted operating profit during the first half of 2021, which would equate to approximately $0.08 per share on the full year.
Finally, following Brian's passing, there was an accelerated contractual vesting of certain equity awards in the fourth quarter. Diluted share count is expected to increase from 138.4 million for the full year 2021 to approximately 141 million for full year 2022 on a weighted average basis. As we look ahead, we're investing today to build bigger, more powerful brands around the Brand Blueprint. These investments are in innovation, in capabilities, in storytelling and in our people. Coming off a year of double-digit revenue and operating profit growth, for 2022, we expect revenue and adjusted operating profit to grow in the low single digits and deliver operating profit margin expansion as well as operating cash flow in the range of $700 million to $800 million. Adjusted EBITDA is expected to be in line with the $1.3 billion achieved in 2021.
Looking at our segments in 2022, we expect the Wizards and Digital Gaming segment to grow in the mid-single digits. We continue to invest to grow this high return business over the near and the long-term. Over the medium term, as we expect to see acceleration beginning in 2023, we're targeting compound annual revenue growth in the high-single to low double-digits and operating margins to remain above 40%.
The toy and game industry has grown at an above trend growth rate the past two years and we expect that to slow or decline in the coming year, but we are well positioned with new initiatives and great content. We believe we can continue to grow the consumer product segment through innovative brand campaigns, including a full year of Peppa Pig and PJ Masks, continued growth in My Little Pony as we accelerate around the blueprint through a strategic and well placed content road map from eOne supporting merchandise plans and new entertainment for key partner brands like Marvel and Star Wars.
While our rights expire for Disney Princess and Frozen at the end of 2022, we are very excited about our continuing relationships with Disney for Marvel, Star Wars and Indiana Jones and the product offerings around these brands. The Disney Princess and Frozen business has averaged approximately $250 million in revenue per year for Hasbro, peaking in 2019 with the last Frozen film. We expect to grow our consumer product segment revenue in the low single digits in 2022 as we execute the rich and valuable portfolio of Hasbro and partner brands, and increasing to a mid single-digit growth rate over the medium term, including greater operating profit margin expansion in 2023 and beyond.
In the entertainment segment, with high demand for content as well as theatrical improving, the entertainment industry is expected to continue growing. Combined with our robust entertainment slate, we anticipate 2022 growth in the entertainment segment in the mid-single digits, absent, the music business, which was sold in 2021. As we activate more Hasbro branded content, we expect revenue to grow in the high-single to low-double digits over the medium term, with higher growth in operating profit and adjusted EBITDA to drive margin expansion. Our cash spend on content for this year is expected in the range of $725 million to $825 million to support content development and deliveries over a multi-year period.
Notably, we're planning significant initiatives executed across the Brand Blueprint in consumer products, gaming and entertainment. Including feature films for Transformers: Rise of the Beast and Dungeons & Dragons, that are expected to accelerate revenue and operating profit growth in 2023. For the medium term through 2024, we expect revenue growth in the mid-single digits on a compound annual basis. Each segment has strength on its own, but as we have seen over time, the greatest return comes from the broad portfolio, that is part of our Brand Blueprint strategy, delivers greater value.
Importantly, we expect the financial benefits of our combined capabilities to grow over time. By year end 2023, operating profit margin is expected to exceed 16% and operating cash flow should reach approximately $1 billion. In closing, long-term investments in our brands and capabilities have built a differentiated business with diversified capabilities to drive long-term profitable growth and enhance shareholder value.
These investments have benefited not only 2021 but are designed to benefit years to come. After delivering a high quality year, we're positioned for further growth in 2022 and on track for greater revenue growth and greater operating profit expansion in 2023 and beyond, as we leverage our investments in building brands and capabilities across the Brand Blueprint to drive profitable growth for the long-term under a strong leadership team.
