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.
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.