Inside Licensing News and Notes, August 3, 2018
Spin Master Gains Spurred by Paw Patrol, Hatchimals Collegtibles
Spurred by the continued success and expansion of Paw Patrol, plus the launch of Hatchimals Collegtibles, Spin Master recorded a six-fold increase in net income to $22.1M on a 54.2% revenue increase to $276.7 million in the second quarter ended June 30. The revenue increase was partially attributable to the company’s 2016 acquisition of Swimways; without that, revenue in the quarter was up a still-robust 37.4%. (All numbers are in U.S. dollars.)
During the quarter, the company launched PAW Patrol and Hatchimalsin China with a “very positive” initial reception. President-COO Ben Gadbois said that Spin Master is moving slowly in China as it gains a deeper understanding of the Chinese consumer, and doesn’t expect business there to have a meaningful effect on financial results for 1-2 years.
Revenue from merchandising royalties, TV distribution and apps Toca Boca and Sago Mini jumped 42% to $17.6M, “primarily driven by licensing and merchandising revenue,” the company reported.
The company also raised its guidance on product sales (excluding Swimways) for the rest of the year to the mid-to-high 20% range; previously it had forecast an increase in the mid-to-high single digits.
Contact:
Spin Master, Adam Beder, SVP, Global Licensing & Business Affairs, 416-364-6002, adamb@spinmaster.com
Sony Takes Big Majority Stake in Funimation
Sony is taking a big step in the anime business, with its Sony Pictures Television arm agreeing to purchase a 95% stake in Funimation, the Texas-based distributor of anime programming, in a deal which values the company at $150 million. In addition to licensing and distributing content, Funimation operates the subscription streaming service FunimationNOW and sells products, on its website. Funimation CEO Gen Fukunaga, who will remain in that position, will retain a stake in the company.
Funimation’s best-known properties include Dragon Ball Z and Attack on Titan.
Contact:
Funimation, Laura Bowers, Senior Licensing Mgr., 972-537-0876, laura.bowers@group1200.com
