Striking screenwriters and actors are currently threatening Hollywood with a film slump. According to the industry publication Variety, Sony has already postponed the release dates for upcoming blockbusters such as Spider-Man: Beyond the Spider-Verse until 2024. In the midst of all the bad news, one strip is currently ensuring that the world of glitz & glamour continues to shine. And it even comes in the color pink. Director Greta Gerwig succeeded in making a real box-office hit with Margot Robbie as Barbie and Ryan Gosling as her boyfriend Ken.
According to data from media analytics firm Comscore, the fantasy comedy has grossed USD 459 million in the U.S. and Canada since its July 21 theatrical release, and another USD 572.1 million overseas, for a total of USD 1.03 billion. This means that this magic mark was reached faster than any other film in Warner Bros.' 100-year history. "Barbillion has exceeded even our most optimistic predictions," it said in a statement. But it's not just the movie studio's coffers that are ringing; toy maker Mattel is too. Founder Ruth Handler, who has since died, brought Barbie to life in the 1950s and has been delighting generations with the doll ever since.
Barbie is one of Mattel's top brands, along with Hot Wheels and Matchbox. According to CEO Ynon Kreiz, the toymaker performed strongly in July in the wake of the huge buzz surrounding the feature film. Toys and products related to the Barbie flick will even be expanded in the second half of the year due to strong demand. The aim is not only to refresh the nostalgic appeal of the doll, but also to integrate the brand in the minds of a new generation at the same time.
But even without the hype surrounding one of the best-known and best-selling dolls in the world, business at the U.S. company has recently been better again. After Mattel had to accept a loss at the beginning of the year due to a general slowdown in the toy industry and an inventory adjustment by retailers after the gloomy Christmas season, the turnaround followed in the second quarter. The company reported adjusted earnings of USD 0.10 per share, compared with analysts' average estimate of a loss of USD 0.02 per share. Sales declined 13% in constant currency to USD 1.09 billion, but still beat estimates of USD 1 billion. While demand for Disney Princess, Disney Frozen as well as Monster High dolls picked up, Barbie saw a decline in the April to June period, before the release of the hit movie.
Mattel maintained its sales and profit forecast for the current full year. On the revenue side, the group expects stagnation, while EPS is expected to be between USD 1.10 and 1.20. In the previous year, EPS of USD 1.10 was achieved. Free cash flow is expected to exceed USD 400 million, significantly more free cash than in the same period last year (USD 256 million). Analysts forecast full-year earnings per share of USD 1.15, exactly in the middle of the company's target range. In the coming fiscal year, however, profits are expected to increase significantly again. Currently, the consensus assumes USD 1.44, which would correspond to an increase of a quarter. The professionals are also optimistic about the share price. In the 10 research reports evaluated by CNN Business, the 12-month targets are between USD 21 and USD 26. In the "worst case", this means a small gain of 2.6%, and in the best case, a gain of 27.1%.
However, investors do not necessarily have to expose themselves to full price risk in order to achieve an attractive return with the "Barbie mother" over the next 15 months. With the two new Softcallable Barrier Reverse Convertibles on Mattel, an appealing yield opportunity is cleverly combined with conditional partial protection. The details at a glance: The new products, which are offered in CHF and USD, come with a risk buffer of 35%. This means that as long as the underlying does not touch the barrier at 65% of the starting value, the BRC achieves the maximum return. This amounts to 9.00% for the CHF variant, the USD counterpart even offers the prospect of a quarterly coupon payment of 13.00% p.a.. Due to the softcallable function, the maximum term of both products can be reduced to a maximum of six months.
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