August 11, 2010 / 11:56 AM / in 7 years

UPDATE 2-Iron Man rides to rescue, Mega Brands posts profit

* Q2 EPS nil vs $0.36 shr loss a year earlier

* Revenue $78.8 million vs C$70.1 million

* Shares rise as much as 7 percent (Adds conference call details, share price. In U.S. dollars)

TORONTO, Aug 11 (Reuters) - Canadian toymaker Mega Brands Inc MB.TO reported a return to profit on Wednesday as toys based on the video game “Halo” and the film “Iron Man 2” pushed sales higher.

Shares of the Montreal-based maker of Mega Bloks, a rival of Lego blocks, rose as much as 7 percent after it released its results. The shares then fell back but were still higher.

The company capitalized on the popularity of the Marvel superhero “Iron Man” and the human super-soldier “Master Chief” from “Halo” as both boys and collectors bought construction action figures and related accessories based on the characters.

During a conference call with analysts, Mega Brands confirmed that its “Iron Man” toys would run into next year and that it would be adding other Marvel movie tie-ins including “Captain America” and “Thor”. “Captain America” and “Thor” movies are set to be released in 2011.

Mega Brands posted net earnings of $1.2 million, or nil per share, for the second quarter ended June 30. That compares with a loss of $13.3 million, or 36 cents a share, during the same quarter a year earlier.

Revenue rose 12 percent to $78.8 million from $70.1 million. Toy sales were up 30 percent.

The company, which sells both its own brands and licensed toys, said it expects it will get more store shelf space in the second half of the year.

Shares were up 1.5 Canadian cents, or 3 percent, at 49 Canadian cents on the Toronto Stock Exchange early on Wednesday afternoon on volume of more than 1.4 million shares. ($1=$1.04 Canadian) (Reporting by Solarina Ho; editing by Peter Galloway)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below