The acquisition of Melissa & Doug is driving sales in Spin Master’s toy portfolio.

For the third quarter of 2024, revenue spiked 24.7% to $885.7 million, including $155 million attributed to Melissa & Doug. Revenue in Toys spiked 34.8%, accompanied by a 16.8% decline in Digital Games and a 41.5% dip in Entertainment.

Gross product sales in Toys spiked 36% to $922.7 million versus $678.6 million in Q3 last year. Excluding Melissa & Doug, gross product sales in Toys increased 9.1% over Q3 last year.

Although the broader economic conditions remain a challenge, we generated toy sales growth across major markets reflecting our continued commitment to creating innovative products, powerful brands and magical play experiences."
Max Rangel
— Max Rangel, Spin Master's Global President & CEO

Spin Master notes that declines outside of toys were primarily due to tough comps against last year’s delivery of PAW Patrol: The Mighty Movie and Unicorn Academy paired with lower in-game spending on the digital side. In toys, a shift of orders from Q2 into Q3 helped push the gains.

“We are executing effectively on the integration, delivering $4.5 million in net cost synergies year to date and we are continuing to identify revenue growth opportunities,” adds Mark Segal, Spin Master’s Chief Financial Officer. “Adjusted EBITDA for the quarter was up just under $9 million comparatively, excluding Melissa & Doug and the PAW Patrol movie in the prior year. We are maintaining our outlook for 2024 for both Spin Master and Melissa & Doug. We continued to execute our capital allocation strategy and by the end of Q3, we repurchased over 2 million shares under our NCIB. Over the long term, we will continue to invest to drive growth, while also managing our costs and preserving financial flexibility to maximize shareholder value.”

Spin Master will host an earnings call tomorrow morning to discuss today’s report in detail.

About the author

James Zahn

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book, a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC) Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.

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