Funtastic Limited (ASX:FUN) has entered into an agreement with Thinkway Toys for the distribution of toys and entertainment products that relate to the Disney and Pixar Toy Story 4 license.
The highly anticipated Toy Story 4 motion picture is scheduled for release in June 2019.
Funtastic’s distribution rights cover both the Australian and New Zealand markets.
Based on the experience of Toy Story 3 in 2010, Funtastic estimates that revenues generated through Toy Story 4 will be more than $25 million during the 2019 and 2020 financial years.
This is estimated to generate an incremental EBITDA margin of between 15% and 20%.
Distributing products based on big theatrical franchises
Funtastic has marketed and distributed some of the world’s largest theatrical franchises - Star Wars, Avatar, How to Train Your Dragon, Ice Age, 007 Bond, Kung Fu Panda.
The company’s past deals with the major studios, coupled with its performance in distributing Toy Story 3, were major contributing factors in securing the new deal.
Funtastic chief executive officer Steven Leighton said: “The decision by Thinkway to appoint Funtastic to market and merchandise Toy Story 4 is an endorsement that Funtastic has excellent capabilities in this area.
“The company has worked tirelessly over the past 12 months to dramatically improve its financial performance and this decision is yet another step in Funtastic growing its credibility in the wider toy and licensing market”.