Spin Master’s acquisition of iconic wooden toy maker Melissa & Doug is already paying off. The new asset contributed US$40.4 million in Q1, helping the Toronto-based company increase its total quarterly revenue by 16.5% over the same period last year to US$316.2 million. 

In yesterday’s financial report, CEO and global president Max Rangel credited this positive result to Spin Master’s recovering toy business. Revenue for the segment was up by 21.5% in Q1, from US$186.3 million in 2023 to US$226.4 million this year. Key drivers included preschool, infant and plush (up 48.7%) and activities, games, dolls and interactive (up 28.6%), although outdoor toys (down 26.6%) and wheels and action figures (down 6.9%) both underperformed. 

The company’s entertainment revenue in Q1 was also a highlight, up 16.5% to US$43.8 million thanks to distribution revenue from the PAW Patrol series and feature film PAW Patrol: The Mighty Movie. This was offset by digital games revenue, which was down by 3.2% to US$46 million due to an in-game purchase drop for Toca Boca’s Toca Life World gaming app. 

Moving forward, Spin Master is forecasting that Melissa & Doug will generate up to US$375 million in total revenue this year. And gross toy sales without this acquisition factored in should end up flat against last year’s US$1.7-billion total.