Rovio ups profits on record Angry Bird 2 revenues in Q1

Thursday 17 May 2018 | 09:35 CET | News

Rovio lifted profits in the first quarter of the year, helped by lower user acquisition costs and higher margins, plus record revenues and strong gross bookings for Angry Birds 2. The adjusted operating profit rose to EUR 9.6 million from 5.3 million the year before, with the margin advancing to 14.1 percent from 8 percent. Profit before tax almost doubled to EUR 9.0 million from 4.8 million while earnings per share climbed to EUR 0.09 from 0.05. The adjusted EBITDA jumped almost 43 percent to EUR 14.6 million, with the margin going to 22.2 percent from 15.4 percent.

Revenues for the quarter decreased by 0.9 percent to EUR 65.7 million, with Games going 0.4 percent higher to EUR 56.8 million and Brand Licensing falling 8.8 percent to EUR 8.9 million. 

Gross bookings for Angry Birds 2 grew 8.5 percent. User acquisition investments decreased to EUR 14.6 million from 16.4 million, making up 25.7 percent of Games revenue. This came out lower than the company’s expectations of 30 percent. Net cash flows from operating activities doubled to EUR 10.5 million from 5.2 million. 

CEO Kati Levoranta said the company will continue with its Games As A Service strategy, consisting of bringing in more users but also making it more interesting for existing users to play longer, to have easier access to virtual goods and to make faster progress. The CEO said Rovio currently has ten games in different development phases, one of which is in soft launch. Costs for digital marketing continued to higher in Q1 so the company will try to extend the payback time range of user acquisition investments to 8-12 months from the previous 8-10 months, starting in the next quarter. This may have a negative profitability effect in the short term but the full year outlook remains unchanged. For 2018, Rovio earlier said it expected revenues at EUR 260-300 million and EBITDA at 9-11 percent of revenue.  

A sequel of The Angry Birds Movie is planned for theatrical distribution in September 2019.

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Categories: Mobile & Wireless
Companies: Rovio
Countries: World
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