Kikuichimonji Posted February 15, 2006 Posted February 15, 2006 They made most money out of selling the Legoland parks. Makes me wonder if they would've made a profit if they hadn't sold those...Still great news :-D Quote
xwingyoda Posted February 15, 2006 Posted February 15, 2006 I don't know if TLC's financial situation will get better in 2006, but I know mine will woresen tks to them :-D Go Lego !!!!!! Yoda Quote
snefroe Posted February 15, 2006 Posted February 15, 2006 they're not overly optimistic about 2006 tho... Quote
DoubleT Posted February 15, 2006 Author Posted February 15, 2006 As far as i can read.. I might very well be wrong. The Legoland Parks etc are NOT included in the numbers. But we need someone with understanding in Finance to read and confirm/disconfirm this.. Quote
tophdawg Posted February 15, 2006 Posted February 15, 2006 this is great news, but how will this affect us as lego collectors Quote
Deinonychus Posted February 15, 2006 Posted February 15, 2006 From what I can gather... Some positive cash-flow was produced by selling the Legoland parks...but that would only serve to help offset any losses taken by still owning the parks throughout the year. The big difference is the lessening of short-term debt and it appears as if sales were better then expected due to licencing, Bionicle, and their shift back to creator-style building sets and such. So basicly...yeah, they're on track to becoming a profitable company once again...not a great deal very quickly...but not bad. 2006 will probably drop off a little due to no Star Wars movie to push those sets...but if things keep up well according to what they listed in the release...they should be in the black again next year Quote
birdie100 Posted February 15, 2006 Posted February 15, 2006 No, Legoland is not included in those figures - ie the money Blackstone paid Lego for them. BUT obviously any Lego sold in Legolands or any other retailer will be included. So, for the first time ever, I know I've helped alter those figures just a litle bit (as a Legland employee!, and by buying SO much Lego!) I do hope that this recovery stays and keeps up. Someone else enquired - what do all these numbers mean for us collectors. In short, they mean Lego will still exist. The situation really was that dire... No, Legoland is not included in those figures - ie the money Blackstone paid Lego for them. BUT obviously any Lego sold in Legolands or any other retailer will be included. So, for the first time ever, I know I've helped alter those figures just a litle bit (as a Legland employee!, and by buying SO much Lego!) I do hope that this recovery stays and keeps up. Someone else enquired - what do all these numbers mean for us collectors. In short, they mean Lego will still exist. The situation really was that dire... Mind you, one thing numbers really can't tell you, and must be noted, is that Lego is moving to being much more movie license tie in etc. To be honest, a 2 by 4 brick made in 1960 is compatible with today's products, the quality was so good. That's where Lego face a fundamental problem, where food retailers and razor makers like gillete don't. The product lasts. But with all these cool spongebob, batman, starwars, city, trains, exo-force, knights kingdom, bionicle, thomas the tank engine sets, I think Lego may well return to pernmanent profatibility. If Lego realises (as I think it has) that it has got to appeal to the iPod buying tyweenies bracket, it's won. It realised in time, thank goodnes. Witness Mattel's Barbie... which didn't. As the tagline once was "Lego... just imagine" Imagine and forsee the future is exactly what they have done. Well done LEGO! Quote
gylman Posted February 16, 2006 Posted February 16, 2006 Any time a well established business posts a one time turnaround like this, it is a HUGE!! comeback. I am not clear on how much of their 7Billion revenue was from selling the parks, and how much of their 0.1B decline in operating expenses was from not having to operate the parks (probably not much since they did not sell early in the year). However, in their annual report they say 9% sales increase. This is very impressive in the current toy market. How to sustain? The threats to lego are genetic bricks (Megablk, Asian ripoffs), Lego's own bricks that never die, and electronic toys. Licenses defeat the first two, and as long as Lego picks successful licenses, they have a good chance to do well. As much as people moan about the licenses, the last year or two have made it obvious that licenses are the future. I would be very curious to know how much Bionicle contributed, how much Starwars contributed, and how much of the profit came from boxes of bricks. They talk about the success of Vikings, but really compared to unit sales of Starwars or Bionicle , Vikings could not be a major factor in the profits. I would have thought that in absolute dollars, the single biggest contributor to Lego profits would be Bionicle, followed by Star Wars, and everything else distant. Also, would love to know what fraction of TLC sales go through S@H, which although it is not perfect, is easily the best online shopping service I have ever used. Anyway, this is great news. Go LEGO! Quote
Evil Willy Posted February 16, 2006 Posted February 16, 2006 I am very glad to hear this...So hopefully LEGO will NEVER close :D Atleast until I die? Hey aslong as I can get soem easily all my life im glad. Or atleast until I lost interest. Thanks for the great news! GO TLC! Quote
Hobbes Posted February 16, 2006 Posted February 16, 2006 Those are annual numbers, not overall numbers. Nothing too overly optimistic, but certainly a good "sign". Quote
snefroe Posted February 16, 2006 Posted February 16, 2006 To be honest, a 2 by 4 brick made in 1960 is compatible with today's products, the quality was so good. That's where Lego face a fundamental problem, where food retailers and razor makers like gillete don't. The product lasts. I don't think that's such a problem, because there's this urge to have more and more bricks so you can modify your models. the success of the bulk buckets is proof of that... there are also special bricks you always seem to lack, like printed tiles, specific modified pieces,... if you want those, it's either buying sets or visiting BL/SAH besides, they do get older, they loose colors, especially the white bricks... Quote
SuvieD Posted February 17, 2006 Posted February 17, 2006 Expectations for 20062006 will be another difficult year for the LEGO Group. The size of the global toy market is still expected to decrease, and the suppliers of traditional toys will therefore still be facing strategic challenges. No films supporting existing or new products will be launched in 2006, and Group revenues are expected to decrease slightly compared with 2005. The focus on earnings will continue, both through product and customer profitability and through streamlining, which will involve transferring production - in whole or in part - to low-pay countries. I don't like that last part. I know that they are already making more and more elements of each set in other countries. Boxes, stickers, instructions are all being printed and made somewhere else. This sounds like even the plastic machines will be leaving. Though I hope not. I would hate to see the actual parts being made somewhere else. It would mess with the whole second hand system (Bricklink/Ebay) in ways I don't want to think about. Imagine some employee in China making ultra rare parts just so they can sell them on ebay for profit. LEGO could do nothing much as trademark and law enforcement in low-pay countries is not what it is in others. Quote
MattZitron Posted February 17, 2006 Posted February 17, 2006 I have hopes for 2006. The new lines seem to reach out more to untouched areas. But it all remains to be seen. Only thing I know for sure, is I'm gonna be broke. Quote
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