SPIN MASTER POSTS RECORD-BREAKING Q3 EARNINGS WHILE NAVIGATING SUPPLY CHAIN ISSUES
Third quarter earnings season continues with Toronto-based Spin Master Corp. as the latest publicly traded toy and entertainment company to report.
Spin Master’s total Q3 revenue spiked 25% to $714.5 million while gross products sales jumped 16% to $682.1 million versus $587.4 million during the same period last year. The company says that a 120.9% spike in other revenue was driven by higher entertainment, licensing, and digital games revenue. Similar to Hasbro’s recent realignment, Spin Master now reports under three distinct “creative centers”: Toys, Entertainment, and Digital Games.
“It’s rewarding to see our strategic approach to toy innovation, engaging storytelling, and open-ended digital play drive strong revenue growth across our three creative centers,” says Spin Master Global President and CEO Max Rangel. “Our global supply chain team expertly managed the market disruptions to ensure steady inventory flow, which allowed us to grow our market share in the U.S. and build momentum ahead of the holiday season. Our first feature film, PAW Patrol: The Movie, helped recruit new fans to the franchise through increased awareness globally, which drove demand for our toys. Within digital games, Toca Life World continues to drive exceptional consumer engagement and revenue growth. With a continued focus on innovation and operational execution, we believe we are well-positioned to bring magical play experiences to kids and their families.”
According to Spin Master’s Chief Financial Officer, Mark Segal, the summer months turned into a milestone period for the company.
“Our gross product sales and total revenue were higher than in any quarter in our history,” Segal says. “The combination of strong sales, diligent cost management, and our continued efforts to refine our operational capability led to record profitability levels.”
For the first nine months of 2021, Spin Master’s total revenue spiked $31.7% to $1.42 billion, up from $1.08 billion last year. Gross product sales increased 20.1%.
Category highlights for Q3 include growth in preschool and girls (28.1%); activities, games and puzzles, and plush (8.2%); boys (1.6%); and outdoor (67.5%).
Spin Master says that brands including PAW Patrol, Wizarding World of Harry Potter, Kinetic Sand, GUND, Rubiks, Swimways, Monster Jam R/C, DC Comics licensed products, and Tech Deck led the charge in terms of growth and demand for the quarter.
Source from: https://toybook.com/