Rovio Posts Slight 3Q Earnings Miss; Sees Significant Revenue Rise for 2022

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by Dominic Chopping

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Rovio Entertainment Oyj on Friday reported third-quarter net profit that fell short of expectations, but said revenue this year is expected to be significantly higher than in 2021.

The company behind the Angry Birds mobile-gaming franchise reported net profit of 7.6 million euros ($7.6 million), compared to EUR11.6 million a year ago, as revenue rose 8.4% to EUR77.4 million.

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A FactSet analysts forecast had expected net profit of EUR75.3 million on revenue of EUR75.3 million.

Rovio said it expects full-year reported revenue to be significantly higher and revenue at comparable currencies to be slightly higher year-on-year. This had guided for strong top-line growth for the prior year.

Based on the pace of growth and investment, adjusted operating profit is still expected to be lower year over year.

User acquisition investment – the cost of advertising and marketing to attract players – increased 18% to EUR21.3 million in the quarter, while total gross bookings rose 6.1% to EUR70.8 million, it said. Gross bookings represent in-app purchases and in-app ad sales.

User acquisition investments are expected to be 28% to 33% of Games’ revenue in the fourth quarter, it said.

“We begin [fourth] Quarter with good momentum,” said chief executive Alexandre Pelletier-Normand.

Write to Dominic Chopping at [email protected]

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