Toymaker Spin Master sees sales rise, profits fall in third quarter

·1 min read

TORONTO — Toymaker Spin Master says its revenue grew 4.3 per cent in its latest quarter as growing interest in DC-licensed products and Kinetic Sand offset fading sales of Hatchimals and some Paw Patrol toys.

The Toronto-based company says revenue for the three months ended Sept. 30 was US$571.6 million, up from US$548.1 million in the third quarter of 2019.

The toymaker, which reports in U.S. dollars, says its third-quarter net income was $86.8 million, or 83 cents per diluted share, down from $92.2 million, or 89 cents per share a year earlier.

Analysts polled by Refinitiv expected Spin Master to report revenue of $532.1 million and net income of $79.75 million.

Co-chief executive Ronnen Harary says the company's sales growth puts the company in a strong position for the upcoming holiday shopping season, after the company launched a new streaming show called "Mighty Express" this fall, as well as its Toca Boca brand digital games.

The results come after Spin Master announced a $50-million deal to buy the London-based maker of the Rubik's Cube.

This report by The Canadian Press was first published Nov. 11, 2020.

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The Canadian Press