Canadian toy and entertainment company Spin Master has reported revenue of US$620 million for Q3 2018, representing a of 2.3% increase over Q3 2017.
Adjusted EBITDA for the period grew 5.6% to US$179.8 million, but net income (-0.83%) and overall gross product sales (-0.4%) were both down slightly.
The Activities, Games & Puzzles segment contributed significantly to Spin Master’s year-over-year revenue growth in Q3, with gross product sales up 29.9% to US$166.5 million. Gund, Cool Maker, Kinetic Sand and Spin Master’s games portfolio—including Cardinal and Marbles—all factored into the sales bump.
Spin Master’s Other Revenue segment increased by 46.1% in Q3 to US$25.8 million. This part of the company’s business reflects merchandising royalties, television distribution income, earnings from licensed products marketed by third parties, and app revenue from Toca Boca and Sago Mini.
It wasn’t a quarter of gains across the board, though, and gross product sales fell in most segments. Remote Control and Interactive Characters was down 9.9% to US$237.9 million, due to the sluggish performance of Air Hogs and Zoomer. Declines for Meccano and Star Wars, meanwhile, saw the Boys Action and High-Tech Construction segment dip 16.6% to US$37.3 million. Preschool and Girls was down 3.4% to US$208.4 million, driven by lower sales for ZhuZhu Pets, Chubby Puppies and PAW Patrol (pictured). And the Outdoor segment declined 2.1% to US$8.1 million.
Spin Master isn’t alone in reporting losses for Q3—Hasbro and Jakks Pacific both took hits that they attributed to the shuttering of TRU. And Mattel’s third quarter was a mixed bag, with net sales falling 8% but operating income growing 41% (the first year-over-year growth in eight quarters).
Moving forward, Spin Master anticipates that its gross product sales for fiscal 2018 will grow in the mid-single-digital range with plush manufacturer Gund, which it acquired in March, factored in.
The toymaker also announced it will soon launch licensed product lines for Monster Jam and How to Train your Dragon, as well as an upcoming product line that integrates with entertainment content.