Solid Q3 reported by Spin Master globally
Growth in activities and games & puzzles
Spin Master has reported a ‘solid’ Q3 2018 with the acquisition of Gund giving the company a boost in the games & puzzles sector. Revenue of US$620.0 million increased 2.3 per cent from 2017’s US$606.1 million. The company said that in “constant currency terms, revenue increased by 2.9 per cent”.
Gross product sales decreased by 0.4 per cent to US$658.2 million, compared to US$660.9 million in 2017, driven by declines in Air Hogs, Zoomer andPAW Patrol, but these were offset by sales of Gund and increases in Cool Maker, Kinetic Sand, and the games portfolio including Cardinal. Interestingly, Spin Master stated “gross product sales increased by 17.4 per cent in the Rest of World and decreased by 1.5 per cent in North America and 5.8 per cent in Europe respectively. International gross product sales on a combined basis were 33.3 per cent of total gross product sales, up from 32.5 per cent.”
Speaking about the results, Ronnen Harary, Chairman and Co-Chief Executive Officer of Spin Master said: "In a quarter where sales were affected by the uncertainty arising from the demise of Toys "R" Us, we are pleased with our operating and financial results for Q3 2018. We saw particularly strong growth in our Activities, Games & Puzzles business segment, further bolstered by our newest acquisition, Gund.
"Looking forward, we are excited about our upcoming innovative product line integrated with entertainment content, to growing our franchises globally including the relaunch of Bakugan and to launching the Monster Jam and How to Train your Dragon licensed product lines."
Ben Gadbois, President and Chief Operating Officer of Spin Master added: "Our performance this quarter highlights the continued successful execution against our four key growth strategies and demonstrates Spin Master's resilience in what has been a challenging period for the industry.
"While we remain confident that the industry will ultimately recover the sales lost to the disruption caused by the Toys "R" Us liquidation, we did not see as much recovery in the third quarter as we expected. Nevertheless, we achieved both revenue and profitability growth in the quarter over last year and generated operating leverage through a strong focus on cost management."
The Company's full Management's Discussion and Analysis and unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2018 are posted on the company's website at www.spinmaster.com/financial-info.php.