Spin Master Corp., the company behind PAW Patrol and Hatchimals, reported second-quarter earnings today. In addition to the second-quarter financial results, there is also news that executive vice president and chief financial officer Mark Siegel will retire next year.
Second-quarter revenue was US$412 million, down 2.1% from last year’s second quarter. These figures include Melissa & Doug’s revenue of $43.3 million. Entertainment revenue soared 7.4%, while toy revenue fell 1.6%, followed by digital games revenue which fell 14.3%.
Spin Master global president and CEO Max Rangel said that this quarter’s performance was in line with expectations due to increased pressure on consumer spending and a fall in in-game spending on digital games.
Looking ahead to 2024, our team will focus on delivering our signature breakthrough innovations in toys and launching new titles, including Ms. Rachel, to deliver entertainment content that resonates with audiences around the world, Such as “Unicorn Academy” and launching new experiences in digital games such as Rubik’s Match, aiming to expand our player ecosystem. We believe Spin Master’s long-term growth potential is driven by our diverse portfolio of innovative toys, engaging entertainment and open-ended digital games. With these compelling capabilities, we believe we will achieve our long-term strategic and financial goals."
— Max Rangel, Global President and CEO of Spin Master
In the first six months of 2024, Spin Master’s revenue was US$728.2 million, of which Melissa & Doug’s revenue was US$83.7 million, an increase of 5.2% from US$692.1 million. Revenues excluding Melissa & Doug were $644.5 million, down 6.9% from $692.1 million last year.
Digging deeper into the toy segment data, total sales of preschool, infant and toddler, and stuffed toys increased 0.1%, while total sales of activities, games and puzzles, and dolls and interactive products soared 17.9%. Sales of outdoor toys grew 2.8%, while sales of Wheels & Action fell off a cliff, down 25.1%.
Total toy sales were US$384.7 million, of which total sales of Melissa & Doug toys were US$51.7 million, a decrease of US$5.3 million, or 1.4%, from US$390 million last year. Total toy sales (excluding Melissa & Doug) were US$333 million, a decrease of US$57 million, or 14.6%, from US$390 million in the second quarter of last year.
Segal will step down in the first half of 2025.
“Spin Master is an extraordinary success story in Canada and globally, driven by passion, entrepreneurship and innovation, and I am honored to contribute to the company’s development and growth journey,” said Segal. “I am very proud of what we have achieved together and look forward to continuing to contribute in an advisory capacity.”
The company will address industry analysts on an earnings call tomorrow morning. Subsequent updates…
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