Spin Master’s Q2 revenue spikes 40%

Sales for licensed The Secret Life of Pets toys, along with a 310% jump in intellectual property revenues, led Spin Master to a 40% bump in Q2 revenues to US$179.4 million.
August 5, 2016

Toronto, Canada-based toy/entertainment company Spin Master‘s Q2 results shot up 40% to US$179.4 million from US$127.7 million in Q2 2015. (In constant currency, revenue increased by 41.8%.) Gross profits were also up 40.2% to US$91.6 million, compared with US$65.4 million earned in the same period last year. Net income, however, was down to US$3.6 million, compared to US$7.6 million in Q2 2015.

Gross product sales increased by 33.7% to US$186 million, led by sales in the activities, games & puzzles and fun furniture category (up 89% to US$53.5 million), followed by boys action and high-tech construction (up 56.7% to US$37.5 millon) and preschool and girls toys (up 26.6% to US$74.6 million). The only dim spot was remote control and interactive characters, which was down 26.9% to US$20.4 million.

In addition to the growth from the company’s acquisition of Cardinal Industries in late 2015, Q2 2016 featured strong contributions from Bunchems, Meccano and PAW Patrol brands,and licensed toys based on the hit animated film The Secret Life of Pets. 

Moreover, Spin Master saw a significant increase in revenue generated by outbound licensing of its proprietary brands like PAW Patrol.In addition to app revenue generated by recent acquisitions Toca Boca and Sago Mini, Spin’s intellectual property revenue increased 310% from US$3 million in Q2 2015 to US$12.4 million in Q2 2016.

Spin Master also remains on the acquisition path. In addition to Cardinal and Toca Boca/Sago Mini, it has just snapped up Editrice Giochi, along with water and outdoor sports toy leader Swimways Corporation.

In terms of revenue distribution, Spin Master saw sales increases in North America (29.4%), Europe (48.2%) and other territories (34.3%). The company plans to grow international sales in 2017 with the formation of an Australian subsidiary based in Sydney and a sales and marketing office in Prague, Czech Republic covering Central and Eastern Europe (CEE).


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