Spin Master has announced its financial results for the three and six months ended 30 June 2024.
Max Rangel, global president & CEO, said: “Our second quarter revenue was in line with our expectations, despite pressure on consumer spending, impacting both toy gross product sales and in-game purchases within digital games. Melissa & Doug had a strong quarter, and the integration is progressing well with incremental revenue opportunities emerging, together with operating synergies.”
Revenue was USD 412.0 million, including Melissa & Doug Revenue of USD 43.3 million, down 2.1% from USD 420.7 million. Revenue, excluding Melissa & Doug was USD 368.7 million, a fall of 12.4%.
Revenue by operating segment reflected an increase of 7.4% in entertainment and a decline of 1.6% in toys and 14.3% in Digital Games.
Toy gross product sales were USD 384.7 million, including Melissa & Doug of USD 51.7 million, down by USD 5.3 million or 1.4% from USD 390.0 million. Toys gross product sales, excluding Melissa & Doug were USD 333.0 million, down by USD 57.0 million or 14.6% from USD 390.0 million.
Operating loss was USD 23.0 million compared to Operating income of USD 34.4 million.
Mark Segal, Spin Master EVP & chief financial officer, said: “Toy Gross Product Sales in the second quarter, excluding Melissa and Doug, were down compared to last year as we were lapping PAW Patrol: The Mighty Movie shipments from Q2 2023 – but they were in line with our expectations. We continued to execute on our capital allocation strategy and by the end of Q2, we have now repurchased over 1.1 million shares under our NCIB*. Looking to the balance of the year, we are pleased to maintain our outlook for 2024. Over the long term, we will continue to invest to drive growth, while also managing our cost-base and preserving financial flexibility to maximize shareholder value.”
On the overall results and prospects, Max Rangel observed: “We believe in Spin Master’s long-term growth potential driven by our diversified portfolio of innovative toys, engaging entertainment and open-ended digital games. With these compelling capabilities, we believe we will deliver our longer-term strategic and financial goals.”
- NCIB stands for Normal-Course Issuer Bid. An NCIB is a Canadian term for a public company’s repurchase of its own stock in order to cancel it. A company is allowed to repurchase between 5% and 10% of its shares depending on how the transaction is conducted.
