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El Segundo, CA, United States (AHN) – The world’s largest toy maker posted a 33 percent decline in profit for the first quarter on Friday despite rising revenue.

Mattel said net income for the period ended March 31 was $16.6 million, or 5 cents a share, down 33 percent from $24.8 million, or 7 cents, last year.

Revenue, including positive effects of currency, was $952 million, up 8 percent from $880 million a year ago.

Analysts had expected earnings of 4 cents on revenue of about $907 million.

The California-based company said domestic sales rose 7 percent while international revenue grew 10 percent.

Worldwide sales of Barbie increased 14 percent. Brands under the Wheels unit, such as Matchbox, Hot Wheels and Tyco, saw revenue rise 4 percent, while Other Girls Brands, which include Disney Princess, grew 38 percent. Revenue from Mattel Girls & Boys Brands was up 15 percent to $656 million.

The Fisher-Price unit fell 2 percent to $309.9 million mainly from a decision to stop producing Sesame Street products.

The entertainment business gained from “Cars,” “Green Lantern” and “Toy Story” movie-related sales, rising 13 percent.

The results reflect the seasonal nature of the market, as the first quarter is the weakest sales period of the year for toy makers. Mattel also reported higher costs. Advertising and promotion expenses increased 8 percent to $101.8 million, while administrative costs grew 14 percent to $334.5 million.

“Our diverse portfolio of brands and countries has once again allowed us to deliver on our goal of consistent growth,” Robert Eckert, chief executive, said in a statement. “Additionally, we are well positioned to improve operating margin and deliver strong cash flow for the year.”

The company’s main rival and the second largest toy maker, Hasbro, posted a 71 percent decline in earnings on Thursday but said it anticipates a boost with the latest “Transformers” movie and two Marvel films, “Captain America” and “Thor,” to be released this summer.

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