Toy market news

tonies reports very successful first quarter of 2022

Group revenue growth of 37% underpinned by strong growth in international markets

  • Revenue for the group in the first quarter of 2022 increases by 37% year-on-year
  • International markets remain growth drivers, share of revenue outside DACH market rises to 23% (8% in Q1 2021)
  • DACH market profitable with positive Adjusted EBITDA margin, with international markets expected to follow that same path to profitability
  • Previously set guidance confirmed with revenues expected at EUR 250m for the group and EUR52m for the US. Adjusted EBITDA margin expected to slightly improve compared to the previous year

tonies SE, a leading international digital children's media and entertainment company with its innovative and award-winning audio platform Toniebox, today reported a very successful first quarter of its financial year 2022. The company increased its revenue to  EUR 46m in Q1 2022 (+37% year-on-year). The international business in particular showed strong demand and now accounts for 23% of total sales (8% in Q1 2021). The growing Tonie portfolio convinced customers, with sales of Tonie figurines up 42% year-on-year. Defying volatility in global markets, tonies’ progress on strategic priorities and adaptability to macro-economic conditions underlie the strength of its business. The company expects continued growth and reconfirms the previously set guidance.

In the first quarter of 2022, the business in DACH continues to grow at 14% compared to the same
period of the previous year to EUR 35m in sales and achieves a positive Adjusted EBITDA margin. As planned in the business model, the revenue is increasingly shifting from Tonieboxes to the higher- margin Tonie figurines, accessories, and digital products. The result of the "Razor-Razorblade Model" is an increase of profitability a few years after market entry, a trend that is also expected for the international markets.

Marcus Stahl, Co-Founder and Co-CEO, says: "We have seen a strong first quarter with all markets continuing to exceed expectations. Our US business in particular is experiencing very high demand and was able to more than quintuple revenues compared to the same period last year."

Patric Faßbender, Co-Founder and Co-CEO, says: "On the product side, we at tonies are proud to have created a popular platform with around 3.7m Tonieboxes sold and would like to thank our customers for their trust and loyalty. We now sell one Tonie every two seconds. The potential of the platform for new product formats and potential partners is enormous. Our cooperations with Steiff and Playmobil were already a good start. In addition to product innovations, we are also excited about the new markets we entered in the last quarter. We can now offer our popular products in English through our European Webshop to customers in Belgium, Luxembourg, the Netherlands, Portugal and Spain."

For the current financial year 2022, tonies confirms the previously set guidance and continues toe xpect revenues of EUR 250m for the group and of EUR 52m for the US for the full year 2022. This implies revenue growth for the full-year of 33% year-on-year and 156% year-on-year respectively.

tonies also expects a slightly improved Adjusted EBITDA margin compared to the previous year (2021: -8.1%), in each case subject to the further development of the global consumer climate, procurement markets and current geopolitical developments.