Mark Segal, Spin Master's chief financial officer, explained that the sales slump was in part due to retailers pulling promotions forward earlier in the fall as well as the company's decision to limit domestic inventory. Yet its quarterly results also showed a decline in net sales to $434.3 million, from $441.6 million a year earlier. Spin Master's shares surged to a 52-week high and were up over 24 per cent, or $7.01, at $36.07 in midday trading on the Toronto Stock Exchange. The Toronto-based company said revenue for the quarter was US$490.6 million, up from US$473.5 million in the fourth quarter of 2019. The stronger digital games revenue, also driven in part by its Sago Mini kids app subscription user base, was revealed as the company said its revenue grew 3.6 per cent compared with a year ago for the three months ended Dec. While it's free to download the app, Spin Master makes money through the in-game purchases and upgrades. The app, developed by Spin Master's Swedish app studio Toca Boca, lets players imagine stories for characters in the virtual game, including kids, babies, elders and creatures, and drag the characters around the screen with their finger and make them do activities. The Canadian toymaker's digital games revenue increased by more than 400 per cent to $31.8 million in its fourth quarter, driven by the Toca Life World platform. 'When you have that many people seeing the product, playing with the product and telling their friends, there's a multiplier effect.' 'There was a crazy amount of people that were actually filming themselves playing in the game and then uploading it to TikTok, and that exposure of the game really started to increase the amount of users,' Ronnen Harary told investors during a conference call.

recorded meteoric growth in its digital games business in the latest quarter as users of its Toca Life World app filmed themselves playing the game and shared the videos on social media, the company's co-CEO said Tuesday.

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