The best regulated crypto exchange
Find out why?

Angry Birds maker Rovio Entertainment reports profits fall

By Ashley Norris

Finnish mobile games maker suggests new user acquisition costs are to blame

Angry Birds maker Rovio Entertainment reports profits fall

Rovio Entertainment, the Helsinki based maker of the Angry Birds mobile game series, has reported a 48 per cent drop in its quarterly profit year-on-year.

The company, which listed its shares in 2018, has seen sales grow 5.4 per cent year on year to €74.8m (£63.5m, $83.2m), however its its third-quarter operating profit was €5.4m significant drop from the same period in 2018.

CEO Kati Levoranta said that the fall in profits was largely due to the increased costs of attracting new players. The company launched a new flagship game in January, Angry Birds Dream Blast, and has invested significantly to acquire new users and drive its growth.

A second new game, Sugar Blast, based on the Angry Birds Dream Blast core gameplay, was launched late in the quarter and didn’t contribute significantly to the quarter’s financials.

Levoranta said: “during the quarter the largest user acquisition investments were made in August, around the release of the Angry Birds Movie 2, which gave us a good opportunity to boost our key games”.

In 2019, Rovio expects group revenues to grow to €295 – 310m (2018: €281m) with adjusted operating profit margin to be between 5 and 8 per cent (2018: 11.1 per cent).

Earlier in October, the company announced plans to restructure its licensing division cutting 20 jobs. However the company confirmed that its licensing segment revenues are expected to be at a similar or slightly higher level in 2019 with focus on the second half of the year after the release of the Angry Birds Movie sequel.

Tokenised securities are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how tokenised securities and leverage work and whether you can afford to take the high risk of losing your money. Nothing in the above article should be regarded as a recommendation to trade generally, to trade on a particular platform or to trade in a particular asset. Asset prices can go down as well as up and past performance is not a guide to future performance. Investors and traders should thoroughly research an asset or strategy before making any trading or investment decision and if necessary seek professional advice.

Subscribe to Currency.com news
iMac Image
The most beautiful trading app
google play storeapple store
iPhone Image
iPhone Image