Paw Patrol Movie Helps Spin Master Deliver A Stellar Q3
Spin Master have just reported fantastic Q3 & YTD numbers to the markets. Revenues rose by 25% year on year for Q3, and YTD to end of September the company reported an increase in revenues of nearly 32% (!).
We don’t have to look far to see what has caused these stellar results, with the company’s first feature film – the Paw Patrol movie enjoying significant box office success, with ticket sales in movie theatres racking up nearly $130m globally at the time of writing – a good performance for a movie of this type.
Accompanying this successful performance, the company also made two key announcements recently: firstly, and least surprisingly the company announced that they have greenlit another Paw Patrol movie to hit cinemas in October 2023. This move clearly makes sense after the success of the first movie, and in addition with the continued placement of the TV cartoon around the world. It looks like Spin Master has a successful entertainment franchise established here, which they should be able to milk for years to come.
The second recent announcement from Spin Master was that they have formed ‘Spin Master Ventures’ in order to invest in start-ups and entrepreneurs working in areas of strategic importance for the company. This move is a real marker for the company, because even the bigger corporate toy companies don’t normally commit to a general strategy of investing in other companies this way, instead being more likely to make an outright acquisition of an established market player in an area where they want to enter or ramp up.
Our analysis suggested a few years back (as we wrote at the time) that Spin Master should be heading for a golden period due to their size, success and structure. They can make acquisitions which would be too small for Hasbro or Mattel, yet they have the financial clout and resources that come with being stock market listed. We see good things ahead for Spin Master.
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