aNb Media News, September 4, 2014

LEGO Reports Financial Reports

LEGO released its financial results for the first half of 2014. Key financial figures show that:

• Revenue in first half of 2014 increased 15 percent compared with the same period last year measured Denmark’s in local currency, which is the krone (and excluding the impact of foreign exchange rate changes).

• Revenue for the first half of 2014 increased 11 percent measured in krones to DKK 11.5 billion ($2.03 billion) compared with DKK 10.4 billion ($1.8 billion) for the same period last year.

• Operating profit (profit before financial items and tax) for first half 2014 was DKK 3.6 billion ($600 million) compared to DKK 3.2 billion ($565 million) for the first half of 2013, an increase of 12 percent year over year.

• Net profit for first half of 2014 was DKK 2.7 billion ($473 million) compared with DKK 2.3 billion ($414 million) for first half 2013.

• Cash flow from operating activities was DKK 3.3 billion ($589 million) compared with DKK 2.9 billion ($506 million) during the first half of 2013.

“Our revenue in the first half of 2014 has more than tripled compared to first half year revenue six years ago, in 2008,” said Jørgen Vig Knudstorp, LEGO group president and CEO, in a statement. “It is a very satisfactory result that shows our significant growth in recent years in a tough economic environment. The result for the first half of 2014 is an outcome of our ability to develop, launch, and distribute LEGO products, which children all over the world put at the top of their wish lists. We are particularly pleased that classics such as LEGO City, LEGO Creator, LEGO Technic, and LEGO Star Wars continue to deliver very strong growth globally.”

LEGO Movie Product Exceeded Expectations

A significant contributor to sales growth in the first half of 2014 was The LEGO Movie product line, which launched in conjunction with the release of The LEGO Movie feature film in early 2014.

Strong Growth in All Regions

In the first half of 2014 the LEGO Group experienced broad-based sales momentum in the regions where it operates.

“Consumer sales growth in Europe, the Americas, and Asia was in the double digits, which is very satisfactory in the light of the global toy market, which experienced a slow start in 2014,” said John Goodwin, executive vice-president and CFO, in a statement. “It is too early to say if the strong performance will be reflected in the full-year results as the majority of LEGO sales to consumers happen in the second half of the calendar year in a short time span of a few weeks leading up to the holiday season. The strong performance of The LEGO Movie products had a positive effect during the first half of 2014, and it remains to be seen how the line will continue to develop behind the highly anticipated launch of The LEGO Movie on DVD in the second half of 2014.”

LEGO says that in the Asian region, growth in LEGO sales varied from market to market. China saw the most significant growth in consumer sales in the region by more than 50 percent. This supports the LEGO Group’s ambitions to further globalize the company and make Asia a significant contributor to future growth. In April 2014 two significant events furthered the company’s plan: the official groundbreaking of the first LEGO factory in China, located in Jiaxing; and the inauguration of a new office in Shanghai, which is one of five main offices globally for the LEGO Group.

“There is huge potential in Asia, and we are still learning and in the process of building our capabilities in the region. The factory and the office represent a significant expansion of our physical presence in the region. Alongside our other main office in Singapore, the Shanghai office and the new factory enable strategically important functions to be located close to our customers as well as children and parents in China and Asia,” says Bali Padda, executive vice-president and COO.

The decision to place a LEGO Factory in China aligns with the LEGO Group’s goal to have production near core markets. Further examples of this show that in Europe, expansions of the LEGO factory in the Czech Republic continued, while a brand new factory was inaugurated in Nyiregyhaza, Hungary in March. Alongside the LEGO factory in Denmark, these mainly supply LEGO products to children in the European markets. In Mexico, expansion of the LEGO factory in Monterrey was completed and inaugurated in June. The Mexican factory mainly supplies the American markets.

Separately, The Wall Street Journal conducted an analysis this morning showing that these financial results puts LEGO slightly ahead of Mattel in sales for the first six months of the year—making LEGO the world’s largest toy company.

Mattel purchased LEGO rival MEGA Brands earlier this year. Meanwhile, a sequel to The LEGO Movie is expected in 2017 and a Ninjago movie is expected next year.

Sprout Launches Tablet at Walmart

Sprout, the 24-hour preschool destination available on TV, on demand, and online for children ages 2–6, announced the release of the Sprout Channel Cubby tablet available exclusively this October at Walmart stores nationwide and on The MSRP is $99 and it’s now available for pre-order.

The unit comes with free preloaded content. There are 40 preloaded full episodes of Sprout shows including The Chica Show, Barney, Fireman Sam, Chloe’s Closet, and the premiere episode of Astroblast. There are 28 music videos featuring The Sunny Side Up Show, Laurie Berkner, and LazyTown and six Sprout song favorites. These are accessible without wi-fi connectivity.

There are free preloaded Sprout-recommended apps along with countless additional activities. It includes special credits for, allowing customers to download more content to their Cubby.

The unit features a child-safe web browser, access to child-friendly video clips from, a Parental Dashboard that allows caregivers to control time and content limits for each child.

The Sprout Channel Cubby is manufactured by Ematic. It features a high-resolution seven-inch screen, Android 4.4, 1.2 GHz Quad-Core Processor, 16 GB Flash memory, 1GB RAM memory, front and back camera, MicroSD Card Slot, HDMI, Wi-fi, and Bluetooth. Wall charger, USB cable, and durable silicone bumper are included.

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