Spin Master highlighted the challenging market conditions and other problems as the company revealed its figures for the third quarter and the year to the end of September which showed revenue down 12.7% on the same three month period in 2021.
The figures, the company noted, were further skewed by the inclusion of revenue from PAW Patrol: The Movie in last year’s figures.
But the company said its figures were still ahead of the wider industry and is looking ahead of the rest of the year.
“We remain committed to our long-term growth strategy through the development of innovative toys, engaging, multiplatform entertainment content and creative, open-ended digital game experiences”Spin Master’s global president and CEO Max Range
Spin Master’s global president and CEO Max Rangel said: “We remain committed to our long-term growth strategy through the development of innovative toys, engaging, multiplatform entertainment content and creative, open-ended digital game experiences. While our year-to-date growth has outpaced the toy industry globally, our revenue this quarter was affected by the pull forward of toy shipments into the second quarter, and by the challenging macroeconomic factors affecting consumers. Our team is excited to bring our magical experiences to children and their families this holiday season and we firmly believe that the power of our innovative toy portfolio, diversified entertainment pipeline and suite of digital games will drive solid results. As we look forward to 2023 and beyond, we will continue to allocate capital to grow the business over the long term by leveraging the strength, diversity and depth of our innovative brands, entertainment franchises and digital games, as well as M&A, to maximize shareholder value.”
Chief financial officer Mark Segal said: “As expected, revenue growth in the third quarter was a difficult comparison due to the shift of customer shipments into the second quarter this year, a decline in digital games revene and from PAW Patrol: The Movie Distribution Revenue recognized in the prior year. Despite this revenue decline, gross margin across our creative centres was up. We will continue to balance investments designed to deliver on our long-term strategy while also effectively managing our costs. Despite our lowered expectations for the year, we remain confident in our ability to execute with high levels of operational discipline and navigate retailer and consumer dynamics to deliver profitable growth for 2022. Our balance sheet and liquidity position remains very strong and we are pleased to announce a quarterly dividend, following our inaugural dividend last quarter.”