First quarter earnings season continues with strong results coming from Spin Master Corp.
The global toy and entertainment company says that overall revenue in Q1 spiked to $424.2 million, a 34% increase versus $316.6 million in the same period last year. According to the company, 30% of its revenue was attributable to toys. Following the new pattern established last year, Spin Master reports its earnings across three “creative centers” — toys, entertainment, and digital games
“The Toy creative center benefited from strong customer demand for our innovative toy line and our global commercial team continued to manage supply chain volatility to ensure we delivered products on time,” says Spin Master’s Global President and CEO Max Rangel. “The digital games creative center, led by Toca Life World, continued to generate strong engagement and momentum. Our performance this quarter reflects Spin Master’s potential to create magical play experiences for children wherever they are — from the strength of our diversified toy portfolio anchored in franchise brands, partner licenses, and exciting innovation, to our engaging multi-platform entertainment content and our open-ended digital playgrounds.”
Entertainment revenue took a slight dip, attributed to more content deliveries during Q1 2021.
Gross product sales for toys spiked 34.9% in Q1 to $397.5 million. Spin Master says that licensed products inspired by Gabby’s Dollhouse, DC Comics, and the Wizarding World of Harry Potter drove demand while the company mitigated supply chain issues.
Looking ahead, Spin Master believes that its gross product sales for 2022 will increase low double digits compared to 2021, up from the mid- to high-single digits previously announced on Feb. 28. Excluding the $26 million in revenue from last year’s release of PAW Patrol: The Movie, the company expects 2022 revenue to increase low double digits as well, up from the previous guidance of mid- to high-single digits.
