Toronto-based toyco Spin Master generated US$710 million in revenue for the third-quarter sales period that ended in September, which is an increase of 13.8% compared to Q3 2022’s take of US$624 million. 

All of the company’s revenue streams achieved growth this quarter, with entertainment revenue spiking by 71.4% to hit US$63.4 million. The second feature film in the PAW Patrol franchise, PAW Patrol: The Mighty Movie, was the primary driver, racking up US$15.6 million in distribution revenue in just two days following its September 29 launch. As of November 1, the film had grossed more than US$167 million worldwide. 

Spin Master’s digital games segment also saw double-digit growth this quarter, thanks largely to the newly launched PAW Patrol Academy e-learning app (Originator) and Sago Mini’s Piknik preschool gaming platform. The toyco’s games segment brought in US$45.3 million in revenue, a 30% increase compared to Q3 2022. 

Rounding out the positive results, revenues for Spin Master’s core toy business were up 8.9% to US$601.5 million. And just after the quarter closed, the company secured a new toy license for Paramount’s rebooted Dora the Explorer IP and reached an agreement to acquire iconic wooden toy-maker Melissa & Doug for US$950 million.

Despite the strong performance in Q3, Spin Master has lowered its year-end outlook for 2023 as it heads into the holiday season. “Looking forward, pressure on the toy industry is expected in the fourth quarter as a result of economic headwinds, which have reduced consumer spend,” said global president and CEO Max Rangel in the quarterly report. “As macroeconomic pressure continues, we have seen POS and orders for toys slow down, particularly from mid-October. We expect this trend to persist for the remainder of 2023.”