The company behind the PAW Patrol is on a roll.
Spin Master Corp. scored some big wins in the second quarter with a 29.6% increase in global revenue to $506.3 million, up from $390.8 million in Q2 last year. Spin Master, which reports in three segments dubbed “creative centers,” says that its core toy business led the charge with a 34.1% increase followed by a 9.2% spike for digital games and a 3.3% increase in entertainment revenue.
“We are very pleased with our strong revenue growth this quarter across all three creative centers amidst a shifting macroeconomic environment,” says Spin Master’s Global President and CEO Max Rangel. “Our toy business continued to grow ahead of the industry with the strong performance of our diversified toy portfolio including innovative intellectual property (IP), evergreen franchise brands, and popular licensed partnerships. Looking to the balance of the year, we remain confident in our ability to execute our strategy of reimagining everyday play for children globally, powered by our deep expertise across toys, entertainment, and digital games. We believe we are well-positioned to manage through external market dynamics to deliver profitable growth and long-term shareholder value while continuing to invest in growth initiatives.”
In the toy category, the only area that saw a decline in Q2 was outdoor, largely driven by the sale of much of that business earlier this year.
Spin Master says that much of the spike in toys was driven by some pull-forward and early orders by retailers looking to avoid out-of-stock situations in the back half of the year. In-app purchases for Toca Life World and new distribution for PAW Patrol helped drive gains in digital gaming and entertainment, respectively.
Amid the strong earnings report, Spin Master declared a dividend on its stock to be paid out this fall. Looking ahead, the company expects to see low double-digit growth for 2022.
This summer has been a big one for Spin Master with a robust slate of deals and announcements, including next year’s Vida the Vet animated series; the hiring of a former EA exec to bolster its digital business; a licensing deal with Sony PlayStation; and a deal with Disney to create toys based on Firebuds.
