By Dominic Chopping
Rovio Entertainment, the Finnish company known for the popular mobile-gaming franchise ‘Angry Birds’, has adjusted its full-year revenue guidance due to challenging market dynamics in the third quarter.
- The company had earlier agreed to a €706 million ($745.8 million) takeover deal from Sega, and now Sega controls 97.7% of Rovio’s shares and is in the process of acquiring the remaining shares.
Despite reporting a net profit of €9.0 million, compared to €7.6 million last year, Rovio’s revenue saw a decline of 5.6% to €73.1 million.
- However, adjusted operating profit expectations remain unchanged and are expected to be at the 2022 level.
Investments in user acquisition, which include advertising and marketing costs to attract players, dropped by 0.9% to €21.1 million in the quarter. Additionally, total gross bookings decreased from €68.7 million to €67.5 million. Gross bookings include in-app purchases and advertising sales within the app.
Looking ahead, user acquisition investments in the fourth quarter are predicted to represent 25% to 30% of the games’ revenue.