After Barbie’s billion-dollar box office smash, Lego’s CEO is eyeing another movie as profits drop
The Barbie movie set a high bar for what toymakers can achieve at the box office with the right mix of nostalgia and marketing that caters to all ages.
Fellow toymaker Lego is no stranger to the realm of movies, with five films under its belt. But Barbie’s billion-dollar success at the theaters is pushing the Danish brand known for its brick-line toys to consider going down that road once again.
“I must admit that I also want us to tell our stories in the film format again at some point,” Lego CEO Niels Christiansen told Bloomberg. “And we’re also looking at that.
“It’s good to see this strong interest in films targeting families, and we’re taking note of that as we move along with our own projects."
A number of legacy toy brands have been foraying into digital platforms as a way to reach a wider audience and stay relevant with the gadget-savvy generation.
Lego made that move first in 2014 when it released The Lego Movie, which made about $470 million at the global box office nine years ago.
The Danish company’s last theatrical release was before the pandemic in 2019, when The Lego Movie 2: The Second Part came out. The movie fell short of delivering the success that some of Lego’s earlier movies did, making only $34.4 million in its opening—about 50% less than the first movie.
In an effort to claw its way back into the digital space, Lego is seeking experts who can bring physical toys to the virtual realm, according to Bloomberg.
The company’s aggressive hiring involves a 40% increase to about 1,800 staffers by the end of 2023, compared to 2022.
Profits decline, but there's hope for a bounce-back
Following a pandemic-era boom in the demand for toys, Lego’s revenues have stagnated and its profits have dropped.
The Danish company saw its profits plunge 19% in the first half of the year, marking its biggest drop in nearly two decades.
It said this drop was well within its expectations. Revenues inched up by 1% for the same period, compared to the first six months of 2022, the company said on Wednesday.
Despite the lackluster financials, Christiansen said he was “very satisfied” with the group’s performance during a tough time for the toy industry.
“We’ve kept outperforming the market at the same rate as the past four or five years. This year, the market was down,” the Lego chief told the Financial Times, adding that the company was ahead of other competitors by 12% on average in the past five years.
Some of Lego’s rivals like Hasbro recorded massive losses as sales eased amid higher inflation and raw material costs.
The company is still growing its footprint globally—it has plans to construct new factories in the U.S. and Vietnam, which will aim for carbon neutrality. It also plans to grow its portfolio of products and open stores in new markets.
“Our strong financial position allows us to invest for the long term, particularly in areas such as digital, sustainability and manufacturing,” Christiansen said in a statement. “Overall, our performance is in line with expectations, after three consecutive years of extraordinary growth.”
Lego didn’t immediately return Fortune’s request for comment.
This story was originally featured on Fortune.com
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