VTech Holdings Limited has announced its results for the year ended 31st March 2017, reporting record revenue.
Profit attributable to shareholders of the Company decreased by 1.3% to $179m USD. The fall in profit was mainly due to the one-off costs associated with the acquisition and integration of LeapFrog Enterprises, Inc. (LeapFrog), including the professional and legal costs associated with the investigation by the UK’s Competition & Markets Authority.
The acquisition of LeapFrog, a leading developer of educational entertainment for children, was completed in April 2016. The acquisition allows VTech to offer the broadest portfolio of products that enhance the education and development of children around the world, and positions VTech for higher growth.
Combining VTech and LeapFrog products, the share of total electronic learning products (ELPs) revenue from platform products, including related software, increased to 23% in the financial year 2017, from 16% in the previous financial year.
Standalone products continued their strong performance. Growth was led by higher sales of core VTech infant, toddler and preschool products. There was also a contribution from LeapFrog standalone toys. This has reaffirmed VTech’s leadership position in the industry. In the calendar year 2016, VTech strengthened its position globally as the number one supplier of electronic learning toys from infancy through toddler and preschool.
Growth in standalone products was driven by higher sales of the core VTech infant, toddler and preschool products, Kidizoom Camera, as well as the Kidi and the Little Love lines, and was also supported by the consolidation of LeapFrog sales.