Funtastic hopes this year's new Toy Story movie will slow its revenue slide after the struggling toy wholesaler's first-half profit dropped 60 per cent.
The company's revenue for the six months to January 31 fell 42.6 per cent to $16.1 million following the end of its Spinmaster and Leapfrog contracts, the closure of Toys'R'Us, and the outstanding success of its Jojo Siwa licence over the corresponding period.
Profit slipped to $14.34 million even after NAB wrote off $15.7 million of debt during the period.
Funtastic said second-half margins will again likely be lower than expected due to delays in the Chill Factor and Pillow Pets ranges, but it forecast stronger revenue from products linked to Toy Story 4.
"The company is expecting to remain in operating losses for the second half of FY19, however, until the success of the Toy Story 4 launch in April-May is known, it is difficult to be more specific at this point in time," the company said on Monday.
Funtastic cut overheads by 30 per cent but still reported an underlying earnings loss of $820,000.
Funtastic, which sells Tech Decks, Razor scooters and Orbeez, is currently without a permanent chief executive following the resignation of Steven Leighton in January.
The search for a replacement is underway.
The company shares were unchanged at 4.9 cents at 1042 AEDT on Monday, down from 13 cents a year ago.
A NOT SO FUNTASTIC FIRST-HALF
* Net profit down 59.5pct to $14.34m
* Revenue down 42.6pct to $16.1m
* No interim dividend, having last paid one in 2013
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