Rovio 1Q Earnings Top Views, Sees Strong Revenue Growth This Year

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By Dominic Chopping

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Rovio Entertainment Oyj on Friday posted a higher-than-expected first-quarter net profit and backed guidance for strong revenue growth this year.

The company behind the Angry Birds mobile-gaming franchise reported a net profit of 5.5 million euros ($5.8 million) for the quarter from EUR7.4 million a year earlier, as revenue rose 27% to EUR85.0 million.

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A FactSet analysts’ forecast had expected net profit of EUR3.1 million on revenue of EUR79.1 million.

Building on the positive momentum in its top live games, the launch of Angry Birds Journey in January 2022 and having the full benefit of the Ruby Games acquisition from the start of the year, Rovio said it is still expecting strong topline growth for the year.

However, depending on the speed of growth and investments, the adjusted operating profit is expected to be lower year-on-year.

User acquisition investments in the quarter–the cost of advertising and marketing to attract players–rose 80% to EUR31.1 million in the quarter, while total gross bookings rose 26% to EUR80.8 million. Gross bookings represent in-app purchases and in-app advertising sales.

The Finnish developer said user acquisition investments in the second quarter are expected to be around 25% to 30% of games’ revenue.

Write to Dominic Chopping at [email protected]

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Credit: www.marketwatch.com /

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