Mattel First-Quarter Profit Drops Amid HIT Entertainment Acquisition
The toy giant's latest earnings decline 53 percent on acquisition and integration costs related to the deal for the company behind the “Thomas the Tank Engine” and “Bob the Builder” franchises.
LONDON - Toy giant Mattel on Monday reported lower first-quarter earnings due in part to costs associated with its acquisition of U.K. kids entertainment firm HIT Entertainment.
The company posted a profit of $7.8 million, or 2 cents per share, including $16 million, or 4 cents a share, in acquisition and integration costs from the $680 million HIT deal. That was down 53 percent from the $16.6 million profit, or 5 cents per share, recorded in the year-ago period.
HIT is the company behind such kids franchises as Thomas the Tank Engine and Bob the Builder.
Quarterly revenue of $928.4 million declined 2 percent, including an unfavorable change in currency exchange rates.
Sales of core Barbie and Hot Wheels products declined 6 percent and 5 percent, respectively.