Spin Master’s revenue was down by 16% in Q2, compared to the same period last year, but new PAW Patrol spinoff Rubble & Crew (pictured) is lifting up the entertainment category.

Spin Master reported a total revenue take of US$420 million for Q2, down from US$506 million last year. The toy segment was hit hardest, posting a 20% decline to US$346 million. Gross toy sales for the quarter also fell by 19% to US$390 million, driven by retailers reducing their inventory levels.

“Our results for the quarter and year to date, as expected, were challenged in comparison to 2022,” said president and CEO Max Rangel in the company’s earnings report yesterday. “However, we are encouraged by the strength and resilience of our global diversified business platform, and our ability to execute on our strategy to drive profitable growth.” 

It wasn’t all doom and gloom for the company this quarter. Its entertainment category was up by 19%, on the strength of new series Rubble & Crew, which launched on Nickelodeon in February. And the digital games category also posted a slight increase (from US$40.3 million in 2022 to US$40.5 million this year), thanks to a higher number of in-app purchases for the Toca Life World mobile game.

Overall, Spin Master’s revenue for the first six months of the year (up to June 30) was down by 25% to US$692 million, compared to the same period in 2022. 

But the company is feeling bullish about the rest of 2023, with several important  launches planned. New digital pet brand Bitzee just launched in North America this week, and the Spin Master team is getting ready to roll out a full-fledged consumer products program for upcoming feature film PAW Patrol: The Mighty Movie, which debuts in theaters on September 29. 

Spin Master is also about to drop two new animated series. Unicorn Academy will premiere on Netflix in November, and Vida the Vet is getting started on CBeebies and BBC iPlayer sometime this fall. And in digital games, the company is working on fresh content for Toca Life World, as well as a new PAW Patrol app.