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Higher sales and profits for VTech

The company grows in North America, Europe and Asia Pacific


VTech recorded revenue for the year ended 31 March 2014 of $1,9 billion, a 2.2% increase compared to previous year. The increase was mainly attributable to higher revenue in North America, Europe and Asia Pacific, offsetting lower revenue in other regions. Profit rose 0.9% to $203.3 million.

Group revenue in North America increased by 1.9% to $950.7 million, as higher revenue from telecommunication products and contract manufacturing services offset lower revenue from electronic learning products (ELPs).

ELPs revenue in North America declined by 1.1% to $358.1 million, mainly because of lower sales of platform products. InnoTab, the firm's educational tablet for children, has faced increasing competition in the US market. Sales of MobiGo 2 were lower due to the popularity of tablets, while V.Reader reached the end of its product life cycle. Standalone products posted good growth, driven by strong sell-through of Go! Go! Smart Wheels, infant products and Switch & Go Dinos.

The company's revenue in Europe was up 2.8% to $791.8 million, in this case thanks to learning products, that increased revenue by 16.5% to $385.8, with sales growth across all major markets, especially France, from both standalone and platform products. The growth in standalone products was driven by the Toot-Toot Drivers range, infant products, Kidizoom and the Kidi line of products. During the calendar year 2013, VTech was the number one market player in the overall infant toys category in France, the UK and Germany.

In platform products, children's educational tablets led the growth. The InnoTab range was updated for the UK market through the introduction of InnoTab 3 and 3S, while Storio 2 was sold in all VTech's major European markets. In the calendar year 2013, Storio continued to be the number one children's educational tablet in Europe for the second year in a row.

VTech posted a revenue increase in Asia Pacific of 9.1% to $108.9 million, driven by higher sales among all product lines. In Latin America, the Middle East and Africa, the company's revenue declined by 13.5% to $47.5 million, with a 28% drop in sales of learning products.

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