Revenue growth continues across the Spin Master portfolio, second half looks positive with a strong product line up and Paw Patrol: The Movie release.
Spin Master has announced its financial results for the three and six month periods ending on 30th June, 2021.
“Our strong financial performance this quarter reflects our success in creating exceptional play experiences for children and their families across toys, entertainment and digital games,” said Max Rangel, Spin Master’s global president and CEO. “By leveraging the strength of each creative center, we are differentiating Spin Master in the children’s entertainment space.”
In Q2, total revenue of US$390.8m increased by 39% from US$281.1m. In constant currency terms, total revenue increased by 36.%. Gross product sales increased by 27.2% to US$359.0m from US$282.2m, primarily driven by higher sales in Pre-school, and Girls & Boys. In constant currency terms, gross product sales increased by 24.9%.
Gross product sales increased by 58.2% in Rest of World, 23.7% in Europe and 23.7% in North America. Other revenue grew by US$35.9m or 126.0% to US$64.4m, driven by higher digital games revenue and entertainment and licensing revenue.
Spin Master said the increase in Pre-school and Girls was driven primarily by sales of Paw Patrol, in addition to Gabby’s Dollhouse and Present Pets, offset in part by declines in Twisty Petz. Meanwhile, a decrease in Activities, Games & Puzzles and Plush was driven primarily by the Games & Puzzles portfolio, although offset in part by sales of Rubik’s4, Inkfluencer, Gund and Orbeez.
“We delivered very strong financial and operating performance this quarter,” said Mark Segal, Spin Master’s chief financial officer. “Our revenue trajectory continued to strengthen, driven by accelerating momentum in our Digital Games and Entertainment creative centers, which drove margin expansion and we are raising our total revenue outlook for the year. We remain committed to our financial framework for value creation, underpinned by our formula for innovation and global growth across toys, entertainment and digital games.”
Spin Master said it continues to focus on driving long-term growth, with the principle strategies including innovation via research and development, increasing international sales in both developed and emerging markets, developing evergreen global entertainment franchises, establishing a leading position in digital games; and leveraging the company’s global platform through strategic acquisitions.
Max Rangel added: “We are well positioned for the second half with an amazing toy line up, growth in our digital games franchises and the highly-anticipated release of Paw Patrol: The Movie, our first foray into feature films. Looking to the future, we are focused on adapting to the changing dynamics of play through innovation, customer-driven decision making, partnerships and a relentless drive to reimagine where imagination can take us, all while delivering profitable growth for our shareholders.”
Full details of the latest Spin Master financials are available here.