Spin Master Corp. announced its financial results for the three months ended March 31, 2021, which showed total revenue growth of U.S. $316.6 million, up 39.3% from $227.3 million at the same time last year.
The company’s gross product sales increased 21.6% or U.S. $294.7 million, from $242.3 million, mainly driven by higher sales in the Preschool & Girls and Outdoor categories. Gross product sales increased by 44.6% in Rest of World, 21.2% in Europe and 18.0% in North America. International gross product sales comprised 42.1% of total gross product sales, compared to 40.3% in the first quarter of 2020.
Other revenue grew by 178.5% to U.S, $61.0 million. Digital games revenue increased by 394.2% to U.S. $34.1 million, led by the Toca Life World platform and growth in the Sago Mini subscription user base. Entertainment and Licensing revenue was 79.3% higher at U.S. $26.9 million.
Spin Master’s full Management’s Discussion and Analysis (MD&A) for three months ended March 31, 2021 can be found here.
“Our performance this quarter clearly demonstrates our commitment to creating exceptional play experiences and engaging children’s entertainment through our three creative centers comprising toys, entertainment and digital games. It is very gratifying to see both our strong financial and operating performance this quarter compared to the same period last year, especially from the continued growth in digital games,” said Ronnen Harary, Spin Master’s Co-Founder. “We recognize the incredible dedication of our teams across the globe. Together, they have rallied to drive the strong results we achieved this quarter. As we manage through the complexities of the pandemic, I am continually amazed and impressed by the effort and dedication of our employees.”
Max Rangel, Spin Master’s newly appointed Global President & CEO added, “At the heart of Spin Master’s growth story is a remarkable purpose – to create magical play experiences for children and their families around the world. Our commitment to that purpose is unwavering. How we bring this vision to market across our three creative centers will continue to evolve and adapt to the changing content landscape, consumer preferences and emerging trends in children’s entertainment. With this solid foundation, supported by relentless innovation and operational excellence, we see tremendous potential for Spin Master and are focused on driving profitable growth and creating significant value for our shareholders.”
“We delivered very strong margins and profitability in the first quarter and are particularly pleased with the broad nature of our performance improvements compared to Q1 2020,” said Mark Segal, Spin Master’s Chief Financial Officer. “Revenue grew as a result of higher Gross Product Sales and growth in digital games led by Toca Life World. Our operational improvements continued to allow us to execute more efficiently and effectively this quarter. Our solid financial position with cash on hand of over $260 million, gives us increasing opportunities to leverage our diverse and global platform for organic growth and acquisitions. We expect many of the trends that drove this performance in the first quarter to continue and we are raising our outlook for 2021.”