Spin Master revealed significant gains in the company’s digital games business last year, while European sales increased in both Q4 and for the full year.
Spin Master has unveiled its results for both Q4 and full year 2020, with Ronnen Harary, Spin Master’s co-CEO, commenting: “We’re proud of the significant operational improvements and cost efficiencies our team delivered in 2020, while simultaneously navigating the complexities of the global pandemic.”
In Q4, total revenue increased by 3.6% to $490.6m, while Gross Product Sales decreased by 7.1% to $511.8m. A decline in Remote Control and Interactive Characters was offset in part by increases in Activities, Games & Puzzles and Plush, Boys Action & Construction and Pre-School & Girls. Gross Product Sales increased by 2.3% in Europe, but declined by 11.8% in North America and 8.1% in Rest of World respectively. International Gross Product Sales were 46.8% of the total Gross Product Sales,, compared to 43.9% in the previous year. Other revenue grew by 76.5% to $56.3m, driven by an increase in digital games, as well as entertainment and licensing revenue. Digital games revenue increased by 404.8% to $31.8m, driven by the Toca Life World platform and growth in the Sago Mini subscription user base.
For full year 2020, Total Revenue decreased by a modest 0.7% to $1,570.6m. Gross Product Sales decreased by 4.0% to $1,623.7m: sales increased by 4.8% in Europe, while they decreased by 19.3% in the Rest of the World and 4.2% in North America respectively. The decline was driven by Remote Control & Interactive Characters and Pre-School & Girls, offset by increases in Activities, Games & Puzzles and Plush and Boys Action & Construction. Digital games revenue increased by 193.1% to $76.8m, primarily driven by higher in-game purchases in the Toca Life World platform and growth in the Sago Mini subscription user base.
“At the outset, we were committed to resolving the operational challenges we faced in 2019. I am pleased to say that we achieved our goal through significantly improved focus and execution in every function across Spin Master globally.,” said Ronnen Harary. “We are particularly excited with the strong growth we saw in our digital games business led by Toca Life World.”
“With a clear vision for our future, a solid operating platform with three thriving creative centres encompassing toys, entertainment and digital games and an exceptional leadership team in place, fortified by the appointment of Max Rangel as global president and with him assuming the position of CEO in April, we are now poised for our next stage of growth. We are well positioned to grow in 2021 as we continue to navigate through Covid-19, based on our diversified brand portfolio, award-winning entertainment franchises and innovative digital games, all driving towards generating strong long term growth and shareholder value.”