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Spin Master 'disappointed' by digital games in Q3 but sees promise in Ms. Rachel
TORONTO — Spin Master Corp.'s chief executive says his company is "disappointed" in how its digital games business performed in its most recent quarter.
Max Rangel says one the biggest reasons for the underperformance was lower in-app purchases within the company's Toca Boca World game.
The slide pushed Spin Master's third-quarter digital games revenue down by 16.8 per cent from last year to US$37.7 million.
It also contributed to a 15 per cent drop in its net income for the period ended Sept. 30, bringing the company's profit to US$140.1 million.
But Rangel is hopeful Spin Master's digital gaming business will soon bounce back as kids get more time to play Toca Boca World around the holidays.
Away from digital play, he sees promise in the new Ms. Rachel toy line, which he called an "instant sensation," and pieces from Melissa & Doug, which delivered US$155 million in revenue in the last quarter alone.
This report by The Canadian Press was first published Oct. 31, 2024.
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