Deborah M. Thomas
Executive Vice President and Chief Financial Officer at Hasbro
Thanks, Chris, and good morning, everyone. Coming off a strong 2021, the Hasbro team delivered a good start to the year. We're excited to have Chris on board. And as he did with Wizards of the Coast, he is looking at Hasbro with a fresh view to our rich opportunities and strength, bolstered by a disciplined approach to build on the solid foundation in place. We look forward to sharing more with you as the year progresses and in October at our Investor Day.
First quarter revenue grew 4% and 6% on a constant currency basis. Each segment had revenue growth. The brand portfolio categories grew and TV film and entertainment was flat, but grew 19%, absent music. Our total gaming category grew 4% versus the first quarter last year to $379 million. Total gaming has grown in 10 of the last 12 quarters, reflecting the multi-generational power of connecting through games. For the full year 2021, our total games category was over $2 billion in revenue with an OP margin in excess of 30%. We continue investing to grow our gaming capabilities and leadership.
At current exchange rates, we expect full year revenue growth in the low-single digits. As we focus on building scale around our largest and most profitable brands growing our games portfolio and tightly manage our fixed cost, we've increased our operating profit growth guidance to mid-single digits and believe we can achieve 16% adjusted OP margin. The first quarter of 2022 experienced the cost pressures we anticipated and guided to. Higher capitalized input and freight costs and year end inventory had a negative impact on gross margin. Freight costs remain high impacting both cost of sales and distribution.
Adjusted operating profit was $141.8 million or 12.2%, down from a year ago due to higher product input costs and freight, the mix of entertainment deliveries in the quarter and the sale of the music business, mid 2021. Consumer product segment revenues grew 5% in constant currency and grew 3%, including a negative impact of FX of $13.5 million. Strength in partner brands, primarily Marvel and Star Wars and emerging brands, primarily Power Rangers and PJ Masks led this growth. Franchise slightly declined due to FX, with Peppa Pig and My Little Pony posting good growth. Hasbro gaming revenues were flat-ups in FX. Geographically, revenue grew in the Americas, the U.S., Canada and Latin America, and declined in Europe.
Absent the impact of FX, European revenues were up. Due primarily to COVID related retail closures and inability to ship product, Asia Pacific revenues declined 19% with FX not having a significant impact in these markets. Adjusted operating profit for the segment declined by $13.4 million. The decrease profit reflects higher product costs and freight expense. As we have previously discussed, price increases take effect in the second quarter to help offset higher costs and support our view to growing revenue low-single digits and improving adjusted operating profit margin.
Wizards of the Coast and Digital Gaming segment revenues grew 9% in the quarter. Magic The Gathering and Dungeons & Dragons as well as Duel Masters contributed to growth. Foreign exchange had a negative $3 million impact. Tabletop revenues increased on the strength of Kamigawa as well as growth in Dungeons & Dragons. Digital revenues grew by $3.7 million. This reflects continued growth in last year's Magic and Dungeons & Dragons digital gaming launches. We do not have similar launches this year and we'll have more difficult comparisons for the remainder of 2022.
As Chris mentioned, last week we announced the acquisition of D&D Beyond from Fandom. This investment provides a platform for growing the Dungeons & Dragons digital business over time, coming in advance of the brand's deeper activation, including a March 2023 feature film and significant consumer product plans. Due to acquisition costs, the transaction is expected to be slightly dilutive to EPS, although immaterial in 2022, but accretive in future years.
Operating profit for the segment declined by $3.6 million or 3% to 40.5%. This is due to higher product costs associated with our tabletop business, both in card stock and printing, increased freight costs and ongoing headcount and product development investment to support the growing business both near and long term. In order to mitigate significantly higher input costs, we expect to implement price increases mid year. We continue to expect the second quarter to be the largest of the year, but now expect full year mid-single digit to potentially low double-digit revenue growth and adjusted operating margin declining slightly from 42.5% in 2021.
Entertainment segment revenues increased 4% primarily due to increased deliveries in unscripted and scripted television, the resumption of live touring shows and higher content sales related to animated programing. These increases were largely offset by revenue from the music business, which was $31.8 million in the first quarter of 2021. As a reminder, the music business was sold mid year 2021 [Technical Issues] negative comparison will also impact the second quarter. Absent music revenue in 2021, the segment revenue grew 22%.
Foreign exchange had a negative $1 million impact in the quarter. For the full year, we continue to expect revenue growth absent the music business in the mid-single digits. Adjusted operating profit in this segment declined by $20.9 million over 2021, and $12.7 million excluding the music business. Approximately half of this decline in operating profit was due to COVID-related cost subsidies received in the first quarter of 2021, and the remainder is due to the mix of lower margin deliveries, particularly in the film and scripted television business. For the second quarter, based on planned deliveries, revenue is expected to increase over the 2021 period and adjusted operating profit margin is expected to decline slightly due to music profits in the comparable period. For the full year, adjusted operating profit margin is expected to be in the high single digits.
Looking at our overall Hasbro P&L gross margin, including cost of sales and program amortization was 59.5% of net revenues compared with 65.3% in the first quarter of 2021. As discussed in the segments, increased input costs and higher freight drove a 2.6 percentage point increase as a percent of revenue in cost of goods sold, while the mix of entertainment delivery drove a 3.2 percentage point increase in program amortization. Based on the expected mix of our business and the timing of price increases taking place, we expect cost of sales as a percentage of revenue in Q2 to be slightly lower than Q1, with the full year percentage to be in line with full year 2021. Based on expected deliveries, program amortization as a percentage of revenue is currently expected to be slightly higher than Q2 2021 levels in the second quarter and in full year 2022 at a slightly lower level than 2021.
To improve product in stocks this holiday season versus last, we're advancing deliveries of key items in our owned inventory so that we can ensure it's on hand. This lets us take advantage of best available rates, but with increased shipping times also ensures that we do not have issues with setting inventory in high consumer demand periods. Additionally, to ensure we have paper stock on hand for strong demand in our high margin growing games business, we've purchased paper product.
Gaming is a strategic growth driver and will continue to ensure we have the right supply and investments behind these brands. Historically, inventory purchases peaked in the August to December timeline. In 2022, we expect this peak to occur in the May to July timeframe. Higher cost and inventory and an approximately 20% acceleration in purchases in the first quarter are reflected in our inventory balance, which is 17% higher than year end 2021. We expect to have higher levels on hand or on the water in the earlier part of the year than historically.
Advertising declined, were driven by lower spend in entertainment with the sale of the music business, as well as lower spend in Wizards and Digital Gaming for launch support of both Arena Mobile and Dark Alliance in 2021. As C&A for the quarter includes higher marketing and sales and administrative costs associated with salary and benefits in our commercial and brand organizations, increasing travel costs and higher freight and warehousing. For the full year, we expect SG&A as a percentage of revenue to be similar to 2021.
Other income net was $1.8 million. In 2021, the first quarter included a $25.6 million gain or $0.19 per share from a legal settlement. Absent that gain, other income was slightly lower year-over-year. The first quarter tax rate was 20.4% of adjusted income. Based on currently enacted tax law, we continue to expect our full year 2022 adjusted rate to be in the 19% to 20% range. The low rate in Q1 of 2021 was due to the legal settlement included in other income, which did not have a tax impact. In our historically and consistently smallest quarter of the year, adjusted earnings per share decreased year-over-year to $0.57 due to a combination of continued supply chain headwinds, non-recurring events and the shift in The Magic release.
At the end of the first quarter, our cash balance was $1.06 billion compared with the year end balance of $1.02 billion, and Q1 2021 of $1.43 billion. Over the last 12 months, we paid down more than $1 billion in debt and returned $376 million to our shareholders in the form of dividends. Given our cash position and business outlook, we plan to repurchase $75 million to $150 million of Hasbro shares this year. We remain on track to achieve our gross debt to adjusted EBITDA target of 2 times to 2.5 times in the second half of 2023 or sooner.
Our operating cash flows for the first quarter of $135 million reflect the advanced inventory purchasing I spoke to earlier and an increase in accounts receivable related to our entertainment business revenue. Our DSO was 73 days compared with 66 days in Q1 2021 when we were only just starting to resume entertainment deliveries after COVID production shutdowns. Our cash spend on production for the quarter was $169 million and was largely funded through the use of our new short term production facility, which carries lower interest and administrative costs than those of the past, and the proceeds of which is included in financing cash flows.
Overall, the team delivered a good first quarter. Our momentum in strategic growth areas like gaming, coupled with strong product innovation, a robust entertainment slate and a focus on cost discipline, give us confidence in maintaining our revenue guidance of low single-digit growth for the full year, while increasing our expectation for adjusted operating profit margin to reach 16%.
We are now happy to take your questions.