Spin Master grew market share globally despite a fall in toy revenue in 2023, according to figures for the final quarter and full year released by the company.
And it said it was “excited by growth opportunities” across its three key arms, Toys, Entertainment and Digital Gamers.
Across the whole of 2023, revenue was down to $1.904 million, a fall of 5.7%. The report noted: “Revenue by operating segment reflected a decline of 11.3% in Toys, partially offset by increases of 60.0% in Entertainment and 6.1% in Digital Games.
In the fourth quarter revenue was up 7.9% year-on-year, with the company’s entertainment arm seeing revenue soaring by more than 76%. Toy gross product sales stood at $502.3 million, an increase of $23.1 million or 4.8%.
Global president and CEO Max Rangel said: “We are very pleased with how our team navigated the challenging macroeconomic environment to deliver revenue growth across toys, entertainment, and digital games in the fourth quarter. Our Toys creative centre grew in the fourth quarter, outperforming the global industry which declined.
“We achieved $1.9 billion in revenue for 2023, generated a record $419 million in Adjusted EBITDA and ended the year with our highest ever available liquidity, including over $705 million in cash”
Mark Segal, Chief Financial Officer Spin Master
“We harnessed the strength of our three creative centres to meet our full-year revenue expectations. While our Toy revenue declined for the full year compared to 2022, our POS remained ahead of the industry and we grew market share globally, by introducing innovation into the toy aisle, engaging fans of popular franchises both licensed and owned, and growing our evergreen brands to create magical play experiences for millions of children globally. We saw strong increases in Entertainment from the PAW Patrol movie and the delivery of the Unicorn Academy series, and we grew Digital Games revenue, highlighting the power of our diversified portfolio to drive long-term growth. Looking forward, we are excited by the growth opportunities ahead of us across our three creative centres. In Toys, we will focus on integrating and growing Melissa & Doug, the leading brand in early childhood play, launching innovative licensed toy lines for Ms. Rachel, celebrating Rubik’s 50th anniversary, and driving innovation and performance across all our core toy brands. In Entertainment, we will build on the positive momentum from the PAW Patrol movie and drive our new Unicorn Academy and Vida the Vet franchises. In Digital Games, we will continue to grow Toca Life World and the Piknik subscription bundle, and focus on the launches of our new mobile digital games Toca Days and Rubik’s Match. We’re confident in the strength of our diversified global platform and portfolio of franchises, brands and games to create long-term growth and shareholder value.”
“We achieved $1.9 billion in revenue for 2023, generated a record $419 million in Adjusted EBITDA and ended the year with our highest ever available liquidity, including over $705 million in cash,” said Mark Segal, Spin Master’s Chief Financial Officer. “Just after the year end, we closed the acquisition of Melissa & Doug, which we are now integrating. Looking forward, we continue to maintain a strong balance sheet and cash flow generation capability, with the capacity to continue investing in innovation and strategic acquisitions. Our financial framework, grounded in our growth formula across our three creative centres, positions us both financially and operationally to achieve and sustain long-term, profitable growth.”
