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Consumer Products

Mattel posts flat second quarter revenue

Despite overall entertainment product sales declining 36%, toy giant Mattel reported flat second quarter revenue and stated upcoming product releases for brands like Barbie, Monster High, Batman - The Dark Night Rises, and Disney's Jake and the Never Land Pirates should drive growth in the next half of the year.
July 17, 2012

Despite overall entertainment product sales declining 36%, toy giant Mattel reported flat second quarter revenue and stated upcoming product releases for brands like Barbie, Monster High, Batman – The Dark Night Rises, and Disney’s Jake and the Never Land Pirates should drive growth in the next half of the year.

Quarterly profits came in at US$96.2 million (28 cents per share), up from US$80.5 million (23 cents per share) in the same period a year ago, while revenue was flat versus a year ago at US$1.16 billion, including an unfavorable change in currency exchange rates.

Cash flows used for investment activities for the first half of 2012 were approximately US$816 million, an increase of US$772 million, driven primarily by Mattel’s acquisition of HIT Entertainment earlier this year for US$680 million.

Within the girls and boys brands business, global sales were US$781.6 million, down 1% versus the same period a year ago. Worldwide gross sales of Barbie increased 5%, while global sales of the Wheels category (Hot Wheels, Matchbox and Tyco R/C) rose 9%, buoyed by the strength of Hot Wheels. The other girls brands category increased 96% with strong Monster High sales. The 36% sales decline within the entertainment business, which includes Radica games and puzzles, was largely driven by decreases in sales of  Cars 2 products.

Within the Fisher-Price business unit, global sales were US$407.3 million, up 2% versus last year, driven by Fisher-Price Friends, HIT Entertainment’s portfolio and Disney’s Jake and the Never Land Pirates. In addition, sales of American Girl goods rang in at US$68.7 million, up 3% versus a year ago.

Regionally, gross sales rose by 1% in the North America, while sales decreased by 1% internationally.

About The Author
Jeremy is the Features Editor of Kidscreen specializing in the content production, broadcasting and distribution aspects of the global children's entertainment industry. Contact Jeremy at jdickson@brunico.com.

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