Spin Master reports 41% sales growth in Q1

After cracking the US$1-billion mark in sales last year, the Canadian company’s positive first quarter results were primarily driven by Hatchimals, PAW Patrol and Swimways outdoor products.
May 12, 2017

After cracking the US$1-billion mark in sales last year, Toronto, Canada-based toy and entertainment company Spin Master posted a 41% lift in revenue for the first fiscal quarter ending March 31.

The company’s sales rose to US$227.7 million from US$161.7 million a year ago, despite Easter falling into Q2 2017.

Excluding revenue from Swimways, which Spin Master acquired in Q3 2016 for US$85 million in cash, revenue grew 19.8%. Other factors contributing to the increase included the ongoing strength of the company’s Remote Control & Interactive Characters and Pre-School and Girls business segments. The former segment experienced 115.4% growth to US$46.5 million in Q1 gross sales, primarily due to the ongoing success of the Hatchimals collectibles toy property, which offset a decline in Air Hogs.

Gross Q1 product sales for the company’s Pre-School and Girls segment, meanwhile, went up 6.6% to US$84.7 million, driven by PAW Patrol and PowerPuff Girls. Sales were offset by dips in Chubby Puppies and Little Charmers.

For Activities, Games & Puzzles and Fun Furniture, a decline in Kinetic Sand drove sales down 3.5% to US$48 million, after a 46% increase in Q4.

The Q1 decline was offset by new IP including Rube Goldberg and Kinetic Rock, as well as steady growth in Cardinal and Bunchems.

Looking at Boys Action and High-Tech Construction, the segment decreased 42.8% to US$13.2 million, primarily due to a decline in shipments of movie-related products for Angry Birds and Secret Life of Pets.

As for Other Revenue, which reflects third-party merchandising royalty and TV distribution income, as well as app sales from Toca Boca and Sago Mini (acquired in Q2 2016), sales more than tripled to US$20.5 million from US$6.0 million in the year-ago period.

Geographically, gross product sales increased 32.9% in North America, 39.2% in Europe and 13.6% in other territories.

The results follow a busy period for the company that saw industry veteran Jennifer Dodge return to the fold in the newly created role of EVP for Spin Master’s entertainment division, and the recent acquisition of brain game retailer Marbles.

Spin Master is also expecting more success to come from its newly launched Hatchimals Colleggtibles line (pictured).

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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