Spin Master rides Star Wars hype to 32 per cent revenue gain
Franchise-branded toys expected to continue drawing customers with film's Dec. release
TORONTO—Lightsaber-wielding SciFi fans aren’t the only ones excited about what’s sure to be the winter’s biggest blockbuster.
After going public earlier this year, Spin Master Corp. is off running, its bottom line boosted in part by products associated with the enduringly popular Star Wars franchise. The Toronto-based toy maker reported US$382.8 million in revenue for the third-quarter of its fiscal 2015, up 32 per cent from the same quarter last year. The positive tally contributes to a strong first nine months of 2015 for Spin Master. The company recorded revenue of $621 million through the first three quarters, an increase of nearly 30 per cent from the same period last year.
“The momentum we demonstrated in the first half of 2015 continued in the third quarter,” said Anton Rabie, co-CEO and chairman of Spin Master. “We experienced particularly strong results from both the Pre-School and Girls segment as well as the Boys Action and High-Tech Construction segment, reflecting the continued success of our Paw Patrol brand, the launch of Meccanoid and licensed products associated with the upcoming Star Wars movie.”
Looking ahead to the final quarter of 2015, the company said it is excited about the expected consumer reaction to its products.
“Preliminary sell-through is encouraging, with strong demand from our owned entertainment franchises and for the Star Wars line, including our Air Hogs Millennium Falcon,” Ronnen Harary, the company’s other co-CEO, said. “We are continuing to focus on developing our entertainment properties into evergreen franchises, which will expand our margins and diversify our revenue streams.”
Despite the revenue beat, the company’s net income fell to $51.1 million, or 52 cents per share, 7.3 per cent below its 2014 mark, largely as a result of IPO-related expenses, the company said.