Gross product sales and revenue are up, driven by categories including Action & Construction, Games & Puzzles, and Outdoor.
Spin Master has announced its financial results for the third quarter ended 30th September 2020.
“This quarter we showed continued progress on many fronts,” said Ronnen Harary, Spin Master’s co-CEO. “We launched one of our strongest fall lines ever, with many of our toys making retailers’ top toy lists and in the quarter we grew both gross product sales and revenue while managing through the uncertain conditions arising from Covid-19. In September, we premiered our first-ever straight-to-streaming entertainment franchise Mighty Express and also saw significant growth in our Toca Boca digital games business, driven by increased engagement and new content. Thanks to the dedication and tenacity of our team members globally, we are very well positioned for the holiday season with strong POS momentum globally for our products, lean retail inventories and continued consumer demand within the toy category.”
Strong performances in Boys Action & Construction, Activities, Games & Puzzles and Plush saw the company increase its gross product sales +0.7% for the quarter to $587.4m. In Activities, Games & Puzzles and Plush, sales increased by $20.1m or 13.2% to $172.5m, driven primarily by Kinetic Sand, the Games & Puzzles portfolio, Cool Maker, Rainbow Jellies and Orbeez. Growth in Boys Action & Construction was thanks to the performance of DC licensed products, Present Pets and Tech Deck, offset in part by declines in DreamWorks Dragons, Boxer and Bakugan. Gross Product Sales in Outdoor increased by $5.9m or +92.2% to US$12.3m.
Sales growth was strongest in Europe, +15.6%, offset by declines of -2.6% in North America and -10.8% in the rest of the world. Revenue is also up, increasing +4.3% from $548.1m to $571.6m.
Other revenue increased by +80.9% to US$48.3m. Growth was driven by strong digital games revenue, primarily from the Toca Life World platform, as well as higher television distribution revenue. Growth was partially offset by lower royalty income from products marketed by third parties using Spin Master’s owned intellectual property.
“Our efforts to manage costs and improve our profitability continue to show progress,” added Mark Segal, Spin Master’s CFO. “Our team achieved key milestones on our operational improvement goals well ahead of schedule and we are well positioned to execute our plan. During the quarter, we have reduced our inventory levels and improved our net working capital and liquidity position. With a diversified portfolio of brands, entertainment franchises and digital games across our global platform and a very solid financial base, we remain focused on investing to create long term value.”