Despite experiencing a 2.1% dip in overall revenue, Spin Master managed to meet its Q2 expectations, thanks to some help from its latest acquisition, Melissa & Doug. 

In yesterday’s quarterly report, the Toronto-based toyco posted US$412 million in revenue from April from June. Wooden toy manufacturer Melissa & Doug, which Spin Master acquired in January for US$950 million, accounted for US$43.3 million of this total. Without its contribution, the company would have sustained a 12.4% revenue decline compared to last year’s second-quarter results (US$420.7 million). 

Bringing in US$36.4 million, entertainment emerged as Spin Master’s best-performing segment at 7.4% of its overall revenue. The toyco attributes this strength to higher distribution revenue for the PAW Patrol series and PAW Patrol: The Mighty Movie, which was unfortunately offset by fewer deals for Unicorn Academy and Vida the Vet. 

Melissa & Doug provided a significant lift to Spin Master’s toy business, which would have been down 14.6% in Q2 without its revenue factored in. Instead, the category only dropped by 1.6% (US$5.4 million), generating US$340.9 million. 

Facing pressure from lower consumer spending, the company is looking to turn things around this holiday season with launches of the first toy lines for preschool YouTuber Ms. Rachel and Unicorn Academy lined up, says CEO and global president Max Rangel. 

Digital games took the hardest hit this quarter, with revenue down by 14.3% compared to last year’s results. Despite the monthly active player count holding steady for its flagship Toca Life World role-playing game, the current economic environment has led to reduced user spending for in-game items and subscriptions, says Spin Master.