Lego Revenue and Profits up 10% in 2013

[griffin]

Lego has done better than expected last year (http://www.toyhobbyretailer.com.au/news/lego-profits-rise-by-10-per-cent-in-2013), beating a sluggish year in the toy industry, to come away with double-digit growth last year.
And this year is set to be a successful one as well, with the Lego Movie earning more than it was expected in countries that it was already released in (it comes here in April).

Good news for Lego fans, as it should mean more of the same stuff that has proven profitable lately.

[i_amtrunks]

I bet Lego are happy about the Star Wars 7 plans, that'll add some 00's to their accounts.

While the licensed sets seem to be where they make their big profits, the risks and efforts they make in them soon roll into the city and other lines.

Just shows that people (myself included) will pay more for a quality product and experience. Something many other companies could learn from.

[Sam]

It must be partially due to many Aussies paying the "Australian tax" for LEGO sets. :)

[griffin]

Note that this is an article about Lego world-wide profit, not Lego Australia.... which was probably even better with the Australia Tax.

[Gouki]

I still maintain that sets in Australia are a few dollars on average, compared to the last couple of years.It's still not perfect, but it does seem to be changing.

[kup]

And what does Hasbro do? They just give us more Bumblebees and persists of failed toy lines.

Lego wins because they build on their strengths while Hasbro tries to 'Knock off' others. Why don't they do the same and try to build up the Transformers franchise? They should know what works and doesn't by now.

Make more Generations, up the quality a bit even if at an increased cost and make them accessible to all and I am sure things will gradually start turning around.

[Lint]

It must be partially due to many Aussies paying the "Australian tax" for LEGO sets. :)

Even with "Australia Tax" we are still a drop in the ocean for their revenues.

I'm not suprised about the profits Lego did well last year. Their kid orientated lines are fantastic and their 'adult/collector' lines were even better. They've definitely worked hard to court the adult market by making quality sets and break the image that Lego is just a toy for children.

Over the last few years I've seen Lego been bought as genuine birthday/xmas gifts and displayed in homes of adults who aren't necessarily into Lego or collecting toys and don't even have children. It's really starting to become part of mainstream life, much like video gaming.

[Golden Phoenix]

I'm not suprised about the profits Lego did well last year. Their kid orientated lines are fantastic and their 'adult/collector' lines were even better. They've definitely worked hard to court the adult market by making quality sets and break the image that Lego is just a toy for children.

Over the last few years I've seen Lego been bought as genuine birthday/xmas gifts and displayed in homes of adults who aren't necessarily into Lego or collecting toys and don't even have children. It's really starting to become part of mainstream life, much like video gaming.

That is one of the things they actively went out to achieve. The realised that the adult market could add to their bottom line. It is still nothing compared to what they make off kids, but having an adult market increases their sales. They don't have to make as many sets for the adults and can charge a bit more for them, but they can still make a noticeable buck of them.

By doing so they turn a cherry on top into full icing on the cake, or even possibly a piece of the pie.

It also has a secondary effect in that when those adult collectors have kids, guess what they are gonna buy for those kids? More Lego.

[Sam]

That is one of the things they actively went out to achieve. The realised that the adult market could add to their bottom line. It is still nothing compared to what they make off kids, but having an adult market increases their sales. They don't have to make as many sets for the adults and can charge a bit more for them, but they can still make a noticeable buck of them.

By doing so they turn a cherry on top into full icing on the cake, or even possibly a piece of the pie.

It also has a secondary effect in that when those adult collectors have kids, guess what they are gonna buy for those kids? More Lego.

Yes, I know this much is true for myself and my brother-in-law, we're basically doing free marketing for LEGO by getting our kids LEGO / Duplo.