Lego hits record-breaking revenue in 85 years

The traditional toy maker's focus turns now to staying relevant in a prominently digital age to keep momentum.

Denmark-based Lego posted a six percent increase in revenue in 2016, amounting to £4.4 billion ($5.3 billion), the highest the toy giant has seen in its 85-year history. Along with this growth comes a positive change in operating and net profits, which are up by 1.7 and 2.2 percent, which converts to DKr 12.4 billion ($1.78 billion) and DKr 9.4 billion ($1.35 billion), respectively.

The company is bracing for slower growth this year, however, as sales are expected to return to more sustainable levels, following the supernatural double-digit turnover that Lego has been experiencing for the past five years. In order to maintain momentum and keep sales decline to a minimum, key efforts are focused on how the traditional toy can stay relevant in the present digital age. The business has now set its sights on models that combine physical and digital play, starting with the Lego Boost, which will be released in the UK this August.

License-wise, the company is predicted to benefit with the release of two Lego films this year, with Batman enjoying box office success, and Ninjago slated for release in September.

Lego sales were reported to be strong in Europe, but remains flat in the US due to persistent manufacturing and marketing issues. China, meanwhile, is seen as an emerging market, with the region's turnover last year growing to more than a quarter.