The Pawtucket, R.I.-based company, whose products include Pokemon paraphernalia, Star Wars action figures and the board game Monopoly, said profits reached $15.1 million, or 8 cents per diluted share, up from $13.8 million, or 7 cents a share, in the first three months of 1999.

Analysts had forecast earnings of just 1 cent a share, according to First Call/Thomson Financial.

The company said earnings were reduced by about 1 cent a share by losses at its interactive games unit GAMES.COM. It said the unit was not expected to post a profit this year.

``While we expect improved performance from interactive games, we do not expect a return to profitability this year,'' said Chairman and Chief Executive Alan Hassenfeld.

Hasbro said worldwide net revenues rose 16 percent to $773.5 million, driven by much higher sales of Pokemon toys and games and other trading card games. In the year-ago period, sales were $668.4 million.

Hasbro said it expects revenue to grow about 5 percent this year and earnings per share to rise 10 percent excluding special items.

``We continue to feel good about our business this year, coming off an exceptionally strong 1999 with 28 percent revenue growth and 33 percent earnings per share growth,'' Hassenfeld said.

``We still expect revenue growth of approximately 5 percent and earnings per share growth approaching 10 percent, excluding the impact of GAMES.COM in 2000 and the consolidation program charges in 1999,'' he added in a statement.

Shares of Hasbro opened at 16 1/8, up 3/8, above a 52-week low of 13 12/16 but well below a 52-week high of 37.

Hasbro ranks second among U.S. toymakers behind Barbie-maker Mattel Inc.

[Updated 4/25/2000]