News
Drop in toy revenue at Marvel
Helen Jacobs Aug 8 2007, 10:00am
Transfer of toy production to Hasbro attributed for 20 per cent loss.
Marvel Entertainment yesterday reported its results for the second quarter and six months ended June 2007.
Revenues for its toy segment were down - with the firm recording Q2 figures of $19.3 million, down $6 million on the 2006 results. The decrease was primarily due to the transition from toys produced by Marvel in 2006 to toys principally produced by Hasbro, the firm's master toy licensee, in 2007. However, margins improved sharply in the toy segment in Q2 2007 from 13 per cent, reflecting the higher margin nature of licence income recorded in 2007.
Overall, Marvel reported a rise of $17.1 million in net sales to $101.5 million. The firm's net income has almost doubled from this time last year, when it posted $16.3 million to $29.1 million in 2007.
Marvel said that the strengthening of its financial status came from its licensing segment, where net sales grew by 45 per cent to $49.3 million. This was largely due to the Spider-Man domestic licensing and merchandising venture with Sony.
Morton Handel, Marvel's chairman, said its operating results were strong and he is also confident for the immediate future.
"In 2008, Marvel will release our first two self-produced films. Producing our own films positions Marvel to benefit from each film's profits, as well as the related fees from merchandising," he said.
