TORONTO — Toymaker Spin Master Inc. is increasing its revenue guidance for 2022 after sales increased 34 per cent in its latest quarter, causing profits to surge more than tenfold.
The Toronto-based company, which reports in U.S. dollars, says it earned US$45.6 million or 43 cents per diluted share in the first quarter, up from US$3.2 million or three cents per share a year earlier.
Adjusted profits were US$57.5 million or 55 cents per share, up from US$8.4 million or eight cents per share in the first quarter of 2021.
Revenues for the three months ended March 31 were US$424.2 million, up from US$316.6 million in the prior-year quarter.
Toy revenues increased 37 per cent to US$350.9 million, digital games was up 49 per cent to US$51.1 million, while entertainment dropped 17 per cent to US$22.2 million.
Spin Master was expected to post 17 cents per share in adjusted earnings on US$368.6 million in revenues, according to financial data firm Refinitiv.
“Following our very strong performance in 2021, we are extremely pleased with the positive momentum we saw across all three of our creative centres in the first quarter of 2022,” stated CEO Max Rangel in a news release.
Spin Master now expects 2022 revenue to increase low double digits from 2021 excluding “PAW Patrol: The Movie,” up from its Feb. 28 forecast of mid- to high single digits.
This report by The Canadian Press was first published May 4, 2022.
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