US: Goldman Sachs warns of toy industry slump

Investment bankers change industry rating from 'neutral' to 'cautious'.
Author:
Publish date:
5_iPad board game.jpg

Toy profits are at risk from smartphone and tablet games – that’s according to the latest research from no-scruples investment firm Goldman Sachs, which has downgraded the industry to a ‘cautious’ rating.

The ratings are designed to inform potential investment decisions.

Board games and puzzles are considered the most vulnerable. Sachs downgraded games specialist Hasbro’s shares from ‘neutral’ to ‘sell’ while certain companies whose portfolios were less reliant on games’ shares were kept at ‘neutral’, including Mattel.

Of course, the decline of the North American and European markets was also to blame. ‘Sachs said toy companies would have to increase their shares in emerging international markets.

‘Sachs analyst Michael Kelter said: "The nominal amount spent on traditional toys/games in the US per capita is down 30 per cent from $85 per person to $60 per person since 1998, and the pace of the decline has accelerated to five per cent to ten per cent, year to date."

[Source: USA Today]

Want to receive up to the minute licensing industry news straight to your inbox? Click here to sign up for the free Licensing.biz Daily Digest and Newsflash services. You can also follow Licensing.biz on Twitter and Facebook.

Related

Featured Jobs

Copyrights Group

Marketing Manager

The Copyrights Group is one of the licensing arms within The Vivendi Group. Acquired by Vivendi in 2016 Copyrights manages the licensing for a portfolio of properties to include Paddington Bear. Some of the other companies within the Vivendi Group include Universal Music Group, and their licensing arm Bravado, Gameloft and Studiocanal to name a few.