Spin Master Reports Preliminary Q4 2023 and 2023 Revenue
These preliminary unaudited Revenue results for the fourth quarter and full year 2023 are intended to provide context for
"We are very pleased with how our team navigated the challenging macroeconomic environment to deliver revenue growth in the 4th quarter," said
Preliminary Revenue Highlights for Q4 2023 as compared to the same period in 2022
Revenue was
(Unaudited) (US$ millions) |
Q4 2023 |
Q4 2022 |
$ Change |
% Change |
|||
Toy revenue |
$ |
406.8 |
$ |
396.7 |
$ |
10.1 |
2.5 % |
Entertainment revenue |
55.2 |
31.2 |
24.0 |
76.9 % |
|||
Digital Games revenue |
40.6 |
37.9 |
2.7 |
7.1 % |
|||
Revenue |
$ |
502.6 |
$ |
465.8 |
$ |
36.8 |
7.9 % |
|
|
|
|
|
|||
Constant Currency Revenue1 |
$ |
493.9 |
|
$ |
28.1 |
6.0 % |
|
1 Non-GAAP financial measure. See "Non-GAAP Financial Measures and Ratios". |
Toy Revenue
The following table provides a summary of preliminary Toy revenue, by product category, for the three months ended
(Unaudited) (US$ millions) |
Q4 2023 |
Q4 2022 |
$ Change |
% Change |
Preschool and Dolls & Interactive |
$ 204.7 |
$ 201.7 |
$ 3.0 |
1.5 % |
Activities, Games & Puzzles and Plush |
160.6 |
160.6 |
— |
— % |
Wheels & Action |
113.3 |
90.0 |
23.3 |
25.9 % |
Outdoor |
23.7 |
26.9 |
(3.2) |
(11.9) % |
Toy Gross Product Sales 1 |
$ 502.3 |
$ 479.2 |
$ 23.1 |
4.8 % |
Constant Currency Toy Gross Product Sales1 |
$ 490.6 |
|
$ 11.4 |
2.4 % |
|
|
|
|
|
Sales Allowances2 |
$ (95.5) |
$ (82.5) |
$ 13.0 |
15.8 % |
Sales Allowances % of Toy Gross Product Sales1 |
19.0 % |
17.2 % |
|
|
Toy revenue |
$ 406.8 |
$ 396.7 |
$ 10.1 |
2.5 % |
1 Non-GAAP financial measure. See "Non-GAAP Financial Measures and Ratios". |
||||
2 The Company enters arrangements to provide sales allowances requested by customers relating to cooperative advertising, contractual and negotiated |
- Toy revenue increased by
$10.1 million or 2.5% to$406.8 million driven by an increase in Toy Gross Product Sales1 partially offset by an increase in Sales Allowances. - Toy Gross Product Sales1 grew by
$23.1 million or 4.8% to$502.3 million from$479.2 million . Constant Currency Toy Gross Product Sales1 increased by$11.4 million or 2.4% to$490.6 million from$479.2 million . The increase was driven by Wheels & Action and Preschool and Dolls & Interactive, partially offset by a decline in Outdoor. - The growth in Toy revenue and Toy Gross Product Sales1 arose from higher order volumes.
- Toy Gross Product Sales1 in Preschool and Dolls & Interactive grew by
$3.0 million or 1.5% to$204.7 million from$201.7 million , primarily driven by Bitzee and Gabby's Dollhouse, partially offset by PAW Patrol and Purse Pets. - Toy Gross Product Sales1 in Activities, Games & Puzzles and Plush was flat at
$160.6 million , with increases in GUND and Kinetic Sand offset by declines in Orbeez and Pixobitz. - Toy Gross Product Sales1 in Wheels & Action increased by
$23.3 million or 25.9% to$113.3 million from$90.0 million , from increases in Monster Jam and HEXBUG. - Toy Gross Product Sales1 in Outdoor decreased by
$3.2 million or 11.9% to$23.7 million from$26.9 million primarily driven by SwimWays. - Sales Allowances increased to
$95.5 million from$82.5 million . Sales Allowances as a percentage of Toy Gross Product Sales1 were 19.0%, compared to 17.2%, primarily driven by higher markdowns and promotional activity, caused by pressure on consumer discretionary spending levels.
Entertainment Revenue
- Entertainment revenue was
$55.2 million , an increase of$24.0 million or 76.9% from higher distribution revenue associated with new content deliveries includingUnicorn Academy , Rubble & Crew and Vida the Vet and from on-going distribution revenue from PAW Patrol: The Mighty Movie. Constant Currency Entertainment Revenue1 increased by$24.1 million or 77.2% to$55.3 million , from$31.2 million .
Digital Games Revenue
- Digital Games revenue was
$40.6 million , an increase of$2.7 million or 7.1% from$37.9 million , due to higher in-game purchases inToca Life World and higher subscription revenue from both the Piknik bundle andPAW Patrol Academy . Constant Currency Digital Games Revenue1 increased by$2.6 million or 6.9% to$40.5 million , from$37.9 million .
Preliminary Revenue Highlights for Year Ended
Revenue was
(Unaudited) (US$ millions) |
2023 |
2022 |
$ Change |
% Change |
|||
Toy revenue |
$ |
1,540.9 |
$ |
1,737.6 |
$ |
(196.7) |
(11.3) % |
Entertainment revenue |
190.1 |
118.8 |
71.3 |
60.0 % |
|||
Digital Games revenue |
173.9 |
163.9 |
10.0 |
6.1 % |
|||
Revenue |
$ |
1,904.9 |
$ |
2,020.3 |
$ |
(115.4) |
(5.7) % |
|
|
|
|
|
|||
Constant Currency Revenue 1 |
$ |
1,889.6 |
|
$ |
(130.7) |
(6.5) % |
|
|
|
|
|
|
|||
1 Non-GAAP financial measure. See "Non-GAAP Financial Measures and Ratios". |
Toy Revenue
The following table provides a summary of
(Unaudited) (US$ millions) |
2023 |
2022 |
$ Change |
% Change |
|||
Preschool and Dolls & Interactive |
$ |
817.7 |
$ |
867.0 |
|
(49.3) |
(5.7) % |
Activities, Games & Puzzles and Plush |
487.5 |
561.7 |
(74.2) |
(13.2) % |
|||
Wheels & Action |
409.3 |
450.8 |
(41.5) |
(9.2) % |
|||
Outdoor |
72.7 |
99.3 |
(26.6) |
(26.8) % |
|||
Toy Gross Product Sales1 |
$ |
1,787.2 |
$ |
1,978.8 |
$ |
(191.6) |
(9.7) % |
Constant Currency Toy Gross Product Sales1 |
$ |
1,763.1 |
|
|
(215.7) |
(10.9) % |
|
|
|
|
|
|
|||
Sales Allowances2 |
$ |
(246.3) |
$ |
(241.2) |
$ |
5.1 |
2.1 % |
Sales Allowances % of Toy Gross Product Sales1 |
13.8 % |
12.2 % |
|
|
|||
Toy revenue |
$ |
1,540.9 |
$ |
1,737.6 |
$ |
(196.7) |
(11.3) % |
1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios". |
|||||||
2 The Company enters arrangements to provide sales allowances requested by customers relating to cooperative advertising, contractual and negotiated |
- Toy revenue declined by
$196.7 million or 11.3% to$1,540.9 million with declines across all product categories and an increase in Sales Allowances. - Toy Gross Product Sales1 declined by
$191.6 million or 9.7% to$1,787.2 million from$1,978.8 million driven by declines across all product categories. Constant Currency Toy Gross Product Sales1 decreased by$215.7 million to$1,763.1 million from$1,978.8 million , a decline of 10.9%. - Toy Gross Product Sales1 in Preschool and Dolls & Interactive decreased by
$49.3 million or 5.7% to$817.7 million from$867.0 million , due to PAW Patrol, Purse Pets andWizarding World , offset in part by Bitzee and Gabby's Dollhouse. - Toy Gross Product Sales1 in Activities, Games & Puzzles and Plush decreased by
$74.2 million or 13.2% to$487.5 million from$561.7 million , mainly due to declines in the Games & Puzzles portfolio, Kinetic Sand, Cool Maker, Pixobitz and Orbeez, offset in part by Rubik's. - Toy Gross Product Sales1 in Wheels & Action decreased by
$41.5 million or 9.2% to$409.3 million from$450.8 million , mainly due to DC and Bakugan, offset in part by an increase in Monster Jam and HEXBUG. - Toy Gross Product Sales1 in Outdoor decreased by
$26.6 million or 26.8% to$72.7 million from$99.3 million primarily driven by SwimWays. - Sales Allowances increased by
$5.1 million to$246.3 million from$241.2 million . Sales Allowances as a percentage of Toy Gross Product Sales1 were 13.8% compared to 12.2%, primarily driven by higher markdowns and promotional activity in the fourth quarter, caused by pressures on consumer discretionary spending in the second half of 2023.
Entertainment Revenue
- Entertainment revenue increased by
$71.3 million or 60.0% to$190.1 million , from higher distribution revenue associated with new content deliveries including PAW Patrol: The Mighty Movie,Unicorn Academy , Rubble & Crew and Vida the Vet as well as the Company's share of revenue from the PAW Patrol series and the continued distribution of PAW Patrol: The Movie. Constant Currency Entertainment Revenue1 increased by$71.3 million or 60.0% to$190.1 million , from$118.8 million .
Digital Games Revenue
- Digital Games revenue increased by
$10.0 million or 6.1% to$173.9 million , from higher in-game purchases inToca Life World . Constant Currency Digital Games Revenue1 increased by$12.7 million or 7.7% to$176.6 million , from$163.9 million .
Outlook
Toy Gross Product Sales1, declined by 9.7% for the year ended
Revenue, excluding PAW Patrol: The Mighty Movie Distribution Revenue of
The Company continues to expect 2023 Adjusted EBITDA Margin excluding PAW Patrol: The Mighty Movie Distribution Revenue of
This press release contains certain preliminary unaudited financial metrics for the three months and year ended
____________________________________ |
1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios". |
2 Based on POS data per Circana. |
Non-GAAP Financial Measures and Ratios
In addition to using financial measures prescribed under IFRS, references are made in this Press Release to the following terms, each of which is a non-GAAP financial measure:
- Toy Gross Product Sales
- Revenue, excluding PAW Patrol: The Mighty Movie Distribution Revenue
- Constant Currency Toy Gross Product Sales
- Constant Currency Sales Allowance
- Constant Currency Entertainment Revenue
- Constant Currency Digital Games Revenue
- Constant Currency Revenue
Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers.
Additionally, references are made in this Press Release to the following terms, each of which is a non-GAAP financial ratio:
- Sales Allowances as a percentage of Toy Gross Product Sales
- Percentage change in Constant Currency Sales Allowances
- Percentage change in Constant Currency Toy Gross Product Sales
- Percentage change in Constant Currency Entertainment Revenue
- Percentage change in Constant Currency Digital Games Revenue
- Percentage change in Constant Currency Revenue
Non-GAAP financial ratios are ratios or percentages that are calculated using a non-GAAP financial measure. Non-GAAP financial ratios do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers.
Management believes the non-GAAP financial measures and non-GAAP financial ratios defined above are important supplemental measures of operating performance and highlight trends in the business. Management believes that these measures allow for assessment of the Company's operating performance and financial condition on a basis that is consistent and comparable between reporting periods. The Company believes that investors, lenders, securities analysts and other interested parties frequently use these non-GAAP financial measures and non-GAAP financial ratios in the evaluation of issuers.
Non-GAAP Financial Measures
Toy Gross Product Sales represent Toy revenues, excluding the impact of Sales Allowances. As Sales Allowances are generally not associated with individual products, the Company uses Toy Gross Product Sales to provide meaningful comparisons across product categories and geographical results to highlight trends in
Revenue, excluding PAW Patrol: The Mighty Movie Distribution Revenue is calculated as revenue excluding distribution revenue of
Constant Currency Toy Gross Product Sales, Constant Currency Sales Allowances, Constant Currency Toy Revenue, Constant Currency Entertainment Revenue, Constant Currency Digital Games Revenue, and Constant Currency Revenue represent Toy Gross Product Sales, Sales Allowance, Toy revenue, Entertainment revenue, Digital Games revenue, and Revenue presented excluding the impact from changes in foreign currency exchange rates, respectively. The current period and prior period results for entities reporting in currencies other than the US dollar are translated using consistent exchange rates, rather than using the actual exchange rate in effect during the respective periods. The difference between the current period and prior period results using the consistent exchange rates reflects the changes in the underlying performance results, excluding the impact from fluctuations in foreign currency exchange rates. Management uses Constant Currency Toy Gross Product Sales, Constant Currency Sales Allowances, Constant Currency Toy Revenue, Constant Currency Entertainment Revenue, Constant Currency Digital Games Revenue, and Constant Currency Revenue to measure the underlying financial performance of the business on a consistent basis over time. Refer to the "Reconciliation of Non-GAAP Financial Measures" section for a reconciliation of these metrics to Revenue, the closest IFRS measure.
Non-GAAP Financial Ratios
Sales Allowances as a percentage of Toy Gross Product Sales is calculated by dividing Sales Allowances by Toy Gross Product Sales. Management uses Sales Allowance as a percentage of Toy Gross Product Sales to identify and compare the cost of doing business with individual retailers, different geographic markets and amongst various distribution channels.
Percentage change in Constant Currency Sales Allowances is calculated by dividing the change in Sales Allowances excluding the impact from changes in foreign currency exchange rates by the Sales Allowances of the comparative period. Management uses Percentage change in Constant Currency Sales Allowances to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Percentage change in Constant Currency Toy Gross Product Sales is calculated by dividing the change in Toy Gross Product Sales excluding the impact from changes in foreign currency exchange rates by the Toy Gross Product Sales of the comparative period. Management uses Percentage change in Constant Currency Toy Gross Product Sales to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Percentage change in Constant Currency Sales Allowances is calculated by dividing the change in Sales Allowances excluding the impact from changes in foreign currency exchange rates by the Sales Allowances of the comparative period. Management uses Percentage change in Constant Currency Sales Allowances to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Percentage change in Constant Currency Toy Revenue is calculated by dividing the change in Toy Revenue excluding the impact from changes in foreign currency exchange rates by the Toy Revenue of the comparative period. Management uses Percentage change in Constant Currency Toy Revenue to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Percentage change in Constant Currency Entertainment Revenue is calculated by dividing the change in Entertainment revenue excluding the impact from changes in foreign currency exchange rates by the Entertainment revenue of the comparative period. Management uses Percentage change in Constant Currency Entertainment Revenue to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Percentage change in Constant Currency Digital Games Revenue is calculated by dividing the change in Digital Games revenue excluding the impact from changes in foreign currency exchange rates by the Digital Games revenue of the comparative period. Management uses Percentage change in Constant Currency Digital Games Revenue to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Percentage change in Constant Currency Revenue is calculated by dividing the change in Revenue excluding the impact from changes in foreign currency exchange rates by the Revenue of the comparative period. Management uses Percentage change in Constant Currency Revenue to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
The following tables present reconciliations of Revenue to Constant Currency Toy Gross Product Sales, Revenue to Constant Currency Digital Games revenue, Revenue to Constant Currency Entertainment Revenue, and Revenue to Constant Currency Revenue for the three months and year ended
|
|
Year Ended |
||
(Unaudited) (US$ millions) |
Q4 2023 |
Q4 2022 |
2023 |
2022 |
Constant Currency Toy Gross Product Sales |
490.6 |
498.3 |
1,763.1 |
2,030.6 |
Impact of foreign exchange |
11.7 |
(19.1) |
24.1 |
(51.8) |
Toy Gross Product Sales |
502.3 |
479.2 |
1,787.2 |
1,978.8 |
Constant Currency Sales Allowances |
(92.5) |
(87.4) |
(240.2) |
(254.6) |
Impact of foreign exchange |
(3.0) |
4.9 |
(6.1) |
13.4 |
Sales Allowances |
(95.5) |
(82.5) |
(246.3) |
(241.2) |
Toy revenue |
406.8 |
396.7 |
1,540.9 |
1,737.6 |
|
|
|
|
|
|
55.3 |
33.2 |
190.1 |
123.2 |
Impact of foreign exchange |
(0.1) |
(2.0) |
— |
(4.4) |
Entertainment revenue |
55.2 |
31.2 |
190.1 |
118.8 |
|
|
|
|
|
Constant Currency Digital Games revenue |
40.5 |
40.1 |
176.6 |
171.9 |
Impact of foreign exchange |
0.1 |
(2.2) |
(2.7) |
(8.0) |
Digital Games revenue |
40.6 |
37.9 |
173.9 |
163.9 |
|
|
|
|
|
Constant Currency Revenue |
493.9 |
484.2 |
1,889.6 |
2,071.1 |
Impact of foreign exchange |
8.7 |
(18.4) |
15.3 |
(50.8) |
Revenue |
502.6 |
465.8 |
1,904.9 |
2,020.3 |
The following tables present the composition of Percentage change in Constant Currency Toy Gross Product Sales, Percentage change in Constant Currency Sales Allowance, Percentage change in Constant Currency Entertainment Revenue, Percentage change in Percentage change in Constant Currency Digital Games Revenue and Percentage change in Constant Currency Revenue for the three months and year ended
|
|
|
$ Change |
|
% Change |
||||
(Unaudited) (US$ millions) |
Q4 2023 |
Q4 2022 |
|
As |
Impact of |
In |
|
As |
In |
Toy Gross Product Sales |
502.3 |
479.2 |
|
23.1 |
(11.7) |
11.4 |
|
4.8 % |
2.4 % |
Sales Allowances |
(95.5) |
(82.5) |
|
(13.0) |
3.0 |
(10.0) |
|
15.8 % |
12.1 % |
Toy revenue |
406.8 |
396.7 |
|
10.1 |
(8.7) |
1.4 |
|
2.5 % |
0.4 % |
Entertainment revenue |
55.2 |
31.2 |
|
24.0 |
0.1 |
24.1 |
|
76.9 % |
77.2 % |
Digital Games revenue |
40.6 |
37.9 |
|
2.7 |
(0.1) |
2.6 |
|
7.1 % |
6.9 % |
Revenue |
502.6 |
465.8 |
|
36.8 |
(8.7) |
28.1 |
|
7.9 % |
6.0 % |
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
$ Change |
|
% Change |
||||
(US$ millions) |
2023 |
2022 |
|
As |
Impact of |
In |
|
As |
In |
Toy Gross Product Sales |
1,787.2 |
1,978.8 |
|
(191.6) |
(24.1) |
(215.7) |
|
(9.7) % |
(10.9) % |
Sales Allowances |
(246.3) |
(241.2) |
|
(5.1) |
6.1 |
1.0 |
|
2.1 % |
(0.4) % |
Toy revenue |
1,540.9 |
1,737.6 |
|
(196.7) |
(18.0) |
(214.7) |
|
(11.3) % |
(12.4) % |
Entertainment revenue |
190.1 |
118.8 |
|
71.3 |
— |
71.3 |
|
60.0 % |
60.0 % |
Digital Games revenue |
173.9 |
163.9 |
|
10.0 |
2.7 |
12.7 |
|
6.1 % |
7.7 % |
Revenue |
1,904.9 |
2,020.3 |
|
(115.4) |
(15.3) |
(130.7) |
|
(5.7) % |
(6.5) % |
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