The authors of Angry Birds have published financial results for July-September of this year. Despite the revenue growth, the company’s profit fell by half compared to the same quarter a year earlier.
Sugar Blast
The main figures from the report:
- the revenue of all companies for three months amounted to €74.8 million (5.4% growth);
- gaming segment revenue — €66.4 million (5.2% growth);
- licensing department revenue — €8.4 million (6.2% growth);
- operating profit — €5.4 million (48.1% drop).
The company’s management explains such a significant reduction in profits by significantly increased marketing costs. They grew in annual terms by 52.2% — from €17.8 million to €27.1 million.
The company actively promoted both its main and already elderly title — Angry Birds 2 (the game earned € 25 million in the quarter), and the Angry Birds Dream Blast released in January (the game earned €17.8 million in the quarter). Rovio also actively promoted Sugar Blast, which appeared in September.
Given that the company is currently in a conditional transition period (Rovio is actively updating its portfolio in favor of new IP), its marketing costs will continue to grow.
Also on the topic:
- By the end of the year, Rovio will spend up to 40% of gaming revenue on UA
- During the restructuring, Rovio is going to lay off 20 employees