Spin Master posts profit bump with rising Paw Patrol sales, digital games revenue
Toy manufacturer's profit powered by digital game revenue, and is expected to foray into feature films to boost toy sales and licensing and merchandising revenues.
Spin Master Corp. is reporting a bump in profit in its latest quarter as revenues climbed 39 per cent thanks to higher sales of Paw Patrol, Gabby’s Dollhouse and Present Pets toys and strong digital games revenue.
The children’s entertainment company says its second quarter net income was US$33.5 million or 32 cents per diluted share compared to a net loss of US$14.9 million or a loss of 15 cents per diluted share a year earlier.
The Toronto-based company, which reports in U.S. dollars, says it recorded a total revenue of $390.8 million in the three months ended June 30, a 39 per cent jump over the $281.1 million recorded during the same period of 2020.
Analysts polled by Refinitiv forecasted a net income of 23 cents per share on $343.1 million in revenues.
Max Rangel, Spin Master’s global president and chief executive officer, says the company is well positioned for the second half of 2021 with a strong toy line up, growth in digital games franchises and the release of Paw Patrol: The Movie.
He says the toy and game company’s first foray into feature films is expected to boost toy sales and licensing and merchandising revenues.