Spin Master’s Toy revenue has increased, fuelled by a strong first half of 2022 and an impressive performance within Pre-school Dolls & Interactive Toys.
Global toy company Spin Master has announced its preliminary unaudited Revenue and Toy Gross Product Sales for the three months and year ended 31st December 2022. Final results for the period will be posted on 8th March 2023.
The company’s Toy business, which put in a strong performance in the first half of 2022, helped offset slight declines in revenue from Spin Master’s Entertainment and Digital Games businesses, the full-year results reveal. Revenue was $2,020.3m (rounded to the nearest hundred thousand), a decrease of 1.1% from $2,042.4m. Toy revenue accounted for $1,737.6 of the total, up from $1,731.8 in 2021, an increase of $5.8m or 0.3%.
Within Toys, full-year growth was driven by Pre-school Dolls & Interactive toys, which saw revenues increase +7.1% to $867m (up from $809.6m in 2021). Wheeled and Action Toy revenue also enjoyed a modest increase, up +1.2% to $450.8m from $445.6m. Outdoor Toys saw the largest decline, down -16.8% to $99.3m, while Activities, Games, Puzzles and Plush also declined -4.4% to $561.7m.
Toy Gross Product Sales for the year increased +0.8% to $1,978.8m from $1,962.4m in 2021.
Looking specifically at Q4 2022 versus 2021, revenue decreased -24.9% to $465.8m from $620.5m. Toy revenue decreased -26.8% and Digital Games -24.2%, though these decreases were partially offset by an increase in Entertainment revenue of +9.5%.
Overall, revenue increased +2.7% for the year ended 31st December 2022 versus the same period 2021, and Spin Master expects 2023 Toy Gross Product Sales seasonality to return to historical averages of 30%-35% in the first half of the year.
“We are pleased that we grew both our Constant Currency Revenue and Constant Currency Toy Gross Product Sales for 2022” said Max Rangel, Spin Master’s global president & CEO.
He added: “From a creative centre perspective, in Toys we had an exceptionally strong first half of 2022, driven in part by retailers bringing in toys earlier in the year than normal to minimize anticipated supply chain disruptions going into the Fall. As expected, Toy Revenue in the second half of 2022 was pressured by changes in the macroeconomic environment, particularly from higher inflation compounded by foreign exchange volatility and a carry-over of inventory at retail from the first half of 2022. In Entertainment, we grew licensing and merchandising revenue and continued to build our content pipeline with new series introductions. Our Digital Games creative centre, lapping unprecedented growth during the pandemic, experienced a slight revenue decline in 2022. We continue to pursue our long-term strategy of leveraging our IP across all three creative centres, making meaningful acquisitions, growing our global footprint and delivering magical experiences for children and their families, in order to deliver long term shareholder value.”