First quarter earnings season continues with Toronto-based Spin Master as the latest of the publicly traded toy and entertainment companies to check in.
The purveyors of PAW Patrol bucked the trend in Q1 with revenue ،ing 16.5% to $316.2 million, up from $271.4 million in the same period last year. While that total includes $40.4 million in revenue attributed to Melissa & Doug, which Spin Master acquired last year, revenue absent Melissa & Doug still increased 1.6%.
A bright sign for the overall health of the toy industry is that Spin Master says that revenue in its Toys segment ،ed 21.5% in Q1 followed by a 16.5% ،n in Entertainment. Di،al Games fell 3.2%. Gross ،uct sales in toys grew by 22.1% in Q1. Excluding Melissa & Doug, sales saw a modest 0.5% increase.
“As we approach the 30th anniversary of Spin Master’s founding, I wanted to reflect on our growth and evolution,” says Max Rangel, Global President & CEO. “Over the past 30 years, we have grown from an innovative s،-up toy company to become a global, fully-imagined children’s entertainment company. We’ve continued to build on our leader،p position in toys through disruptive innovation and have diversified our robust portfolio through incremental licensed partner،ps, international expansion, the development of entertainment content, di،al games capabilities, and compelling acquisitions.”
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Looking ahead, Rangel says that the continued positioning of Melissa & Doug within the Spin Master portfolio and upcoming ،uct and entertainment offerings s،uld help growth.
“Our Toy gross ،uct sales growth in the first quarter reflects the addition of Melissa & Doug’s trusted line of open-ended and developmental play to our toy business. In 2024, we will bring breakthrough innovation to the toy aisle, alongside impressive launches within our core and licensed ،nd portfolios,” he continues. “Our investment in the creation of multiplatform content including our two new original series Unicorn Academy and Vida the Vet, are expected to drive incremental toy and licensing and merchandising opportunities later in 2024. We will continue to expand our di،al games ecosystem with the launch of Toca Boca Days and Rubik’s Match in the coming months. These di،al games are designed to deepen and broaden our audience base, attracting kids of all ages and s،ing new fans and player communities. Given our financial framework for value creation, the power of our three creative centers, and our strong financial position, we are well-positioned to execute a،nst our strategy of reimagining everyday play and investing in innovation, content, geographic expansion, and acquisitions to drive long-term profitable growth and share،lder value.”
In its earnings release, Spin Master reiterated that the entire global toy industry “continues to be challenged by the macroeconomic environment” and “reduced consumer discretionary spending.”
To better incorporate the addition of Melissa & Doug to its portfolio, Spin Master realigned its Toy segment reporting to include four distinct categories: Presc،ol, Infant & Toddler and Plush; Activities, Games & Puzzles and Dolls & Interactive; Wheels & Action; and Outdoor.
Spin Master continues to ،ld firm on its full year guidance issued in February and will ،st an earnings call tomorrow.
The post Spin Master Q1 Earnings: Melissa & Doug Fuels Growth appeared first on The Toy Book.
منبع: https://toybook.com/spin-master-q1-2024-earnings/