GlobeNewswire by notified

Rovio Entertainment Corp.: Q3 interim report: Games – strong growth and high profitability

Share

Rovio Entertainment Corporation        Stock Exchange Release                  28 October, 2021 9.00 EEST

Games – strong growth and high profitability

July-September 2021 highlights

  • Rovio group revenue was EUR 71.4 million (67.9) and increased 5.1% year-on-year. Organic growth was 3.6%.
  • Group adjusted operating profit was EUR 14.3 million (12.8) and adjusted operating profit margin 20.0% (18.9)
  • Group adjusted EBITDA was EUR 17.2 million (15.9) and adjusted EBITDA margin 24.1% (23.4)
  • Games revenue increased 6.9% year-on-year to EUR 68.6 million (64.2). Organic games revenue growth was 5.3%. In comparable currencies, Games revenue grew by 7.5%. The Games gross bookings were EUR 66.7 million (64.5) and increased by 3.3% year-on-year. In comparable currencies, the gross bookings grew by 3.9%.
  • Rovio closed the acquisition of Ruby Games first tranche (20% of shares) in September. Ruby Games soft launched Hunter Assassin 2.
  • Angry Birds Friends continued its strong performance and grew its gross bookings to EUR 8.5 million.
  • User acquisition investments were EUR 18.1 million (15.3) and 26.4% of the Games segment’s revenue (23.8%)
  • Operating cash flow was EUR 16.7 million (15.8)
  • Earnings per share were EUR 0.16 (0.12)

January–September 2021 highlights

  • Rovio group revenue was EUR 207.3 million (203.8) and increased by 1.7% year-on-year. Organic growth was 1.3%.
  • Group adjusted operating profit was EUR 30.5 million (39.7) and adjusted operating profit margin 14.7% (19.5)
  • Group adjusted EBITDA was EUR 38.2 million (47.9) and adjusted EBITDA margin 18.4% (23.5)
  • Games revenue increased 3.1% year-on-year to EUR 199.9 million (193.8). Organic growth was 2.6%. In comparable currencies, Games revenue grew by 7.7%. The Games gross bookings were EUR 197.4 million (194.4) and increased by 1.6% year-on-year. In comparable currencies, the gross bookings grew by 6.0%.
  • User acquisition investments were EUR 56.6 million (42.9) and 28.3% of the Games segment’s revenue (22.0%)
  • Operating cash flow was EUR 26.7 million (46.0)
  • Earnings per share were EUR 0.32 (0.38)

Key figures

7-9/7-9/Change,1-9/ 1-9/Change, 1-12/
EUR million20212020%20212020% 2020
Revenue 71.4 67.9 5.1% 207.3 203.8 1.7% 272.3
EBITDA 16.9 15.9 6.5% 37.4 47.8 -21.8% 60.0
EBITDA margin 23.7% 23.4% 18.0% 23.5% 22.0%
Adjusted EBITDA 17.2 15.9 8.4% 38.2 47.9 -20.2% 60.1
Adjusted EBITDA margin, % 24.1% 23.4% 18.4% 23.5% 22.1%
Operating profit 14.0 12.8 9.2% 29.7 39.6 -25.0% 42.5
Operating profit margin, % 19.6% 18.9% 14.3% 19.4% 15.6%
Adjusted operating profit 14.3 12.8 11.6% 30.5 39.7 -23.1% 47.2
Adjusted operating profit margin, % 20.0% 18.9% 14.7% 19.5% 17.3%
Profit before tax 14.6 12.1 20.7% 31.1 38.4 -19.0% 40.7
Capital expenditure 0.9 0.9 -1.7% 2.7 2.8 -3.2% 3.9
User acquisition 18.1 15.3 18.6% 56.6 42.7 32.6% 58.7
Return on equity (ROE), % 19.2% 22.6% 19.2% 22.6% 24.4%
Net gearing ratio, % -72.6% -69.7% -72.6% -69.7% -77.6%
Equity ratio, % 73.5% 81.0% 73.5% 81.0% 82.3%
Earnings per share, EUR 0.16 0.12 25.1% 0.32 0.38 -15.7% 0.43
Earnings per share, diluted EUR 0.16 0.12 25.3% 0.32 0.38 -15.9% 0.43
Net cash flows from operating activities 16.7 15.8 5.6% 26.7 46.0 -41.9% 63.6
Employees (average for the period) 490 475  3.2% 486 467  4.1% 470 

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year. Calculations and definitions are presented in the Performance Measures section.

The changes in comparable currencies have been calculated by translating the reporting period figures with the average USD/EUR exchange rates of the comparison period for the US dollar dominated in-app-purchases in United States and global ad network sales.

Alex Pelletier-Normand, CEO:
Yet another eventful quarter behind us! Q3 was marked by more face-to-face interactions, record Games revenues and notable strategic evolvement. The profitability was at a high level, mainly due to higher revenue, incremental income from Angry Birds Reloaded on Apple Arcade and somewhat lower user acquisition investments.

In September, we made meaningful changes that are also new building blocks for our future. Firstly, we announced that Heini Kaihu will transition from Head of HR to take on the new role of Rovio’s Chief Sustainability Officer. The creation of this position highlights the increasing importance of sustainability as part of our vision and our commitment to lead the charge within the industry. Our aim remains to create long-term value for employees and shareholders in a responsible way, and this role strengthens our commitment to have sustainability rooted in our strategy, operations, products and practices. Secondly, we announced the opening of a new free-to-play casual mobile game studio in Toronto, Canada, headed by the experienced studio manager Julie Beaugrand. We are very happy to see Julie join us and build a team which will add a new foothold for Rovio in the casual space.

Launching this studio is also in line with an adjustment we made to our portfolio strategy. In order to maximise our chances of achieving our goals, we will focus further on more casual and wide appeal games. This has multiple benefits, namely building on our proven expertise, maximising the value of our network of users, and moving away from mid-core, a category increasingly characterised by expensive development costs and dependence on high-CPIs market niches.

Our key live games continued to perform strongly in Q3. Angry Birds Friends kept on growing and had its best quarter since Q2-2017. Our largest two games Angry Birds 2 and Angry Birds Dream Blast were relatively stable year-on-year and quarter-on-quarter. As mentioned in our last quarterly report, we reduced marketing spend for Small Town Murders and Darkfire Heroes and consequently this had a negative impact on these games revenues in the third quarter. Small Town Murders’s team continues to work on improving the game with the target to scale up the game further in the future. For Darkfire Heroes, given the limited size of the game and the aforementioned focus on casual, we decided to assign the team to more promising and wide-appeal projects while moving the game to lean maintenance.

In September, we finalised the first part of the Ruby Games acquisition. The team continued to show their mastery in hyper-casual by launching Forensic Master in September which reached the no. 1 position in US download charts. They also soft launched Hunter Assassin 2, the awaited sequel to the hit game Hunter Assassin.

Our new product pipeline is healthy with Angry Birds Journey and Supernatural City continuing their soft launch and our first Moomin game preparing to join them later this year. In addition, we will see our Angry Birds brand strategy unfold in different formats and platforms. We will announce different initiatives in the coming months for what we’re dubbing "Angry New Year"!

We are excited to enter the last quarter of the year which is typically a busy season with elevated fan engagement and seasonal events across our key games. After 19 months of Rovians showing great agility and resilience while working from home, it is energising to be able to see and engage with our colleagues face-to-face at the office in a hybrid environment. I am very grateful for their continuous commitment and dedication.

2021 outlook (unchanged)
The mobile gaming market continues to grow with casual gaming being a major growth driver. The ongoing changes in consumer behavior and underlying market trends are accelerated by the COVID pandemic and plays an important role in both current games’ operation and new game development. This combined with industry changes like Apple’s privacy policy fuels the near-term uncertainty in the market environment.

We will focus on improving the performance of our key live games and on launching new innovative products. We continue to show diligence in our UA spend. Depending on market conditions, the performance of our investments, and the launch of new games, we aim to increase our UA investments to build growth for the coming years. This may have implications on short-term profitability.

We will continue investing in our Future of Gaming initiatives, taking advantage of the trends we see in consumer behavior and building our positioning in the rapidly evolving market.
In addition, we seek growth through synergistic acquisitions that can deliver long-term value growth.

Audiocast and conference call:
Rovio will host an English language audiocast and phone conference on the Q3 2021 financial results, including a Q&A session, for analysts, media and institutional investors at 14:00-15:00 EEST on October 28, 2021. The audiocast can be viewed live at: https://investors.rovio.com/en , and as a recording later the same day.

Conference call details:
PIN: 83237280#

Finland: +358 981710310
Sweden: +46 856642651
United Kingdom: +44 3333000804
United States: +1 6319131422

More information:
Alex Pelletier-Normand, CEO, tel. +358 40 485 8985 (media phone)
René Lindell, CFO, tel. +358 40 485 8985 (media phone)

Distribution: Nasdaq Helsinki, key media, https://investors.rovio.com/en

Rovio in brief:
Rovio Entertainment Corporation is a global mobile-first games company that creates, develops and publishes mobile games, which have been downloaded over 4.5 billion times. Rovio is best known for the global Angry Birds brand, which started as a popular mobile game in 2009, and has since evolved from games to various entertainment, animations and consumer products in brand licensing. Rovio has produced The Angry Birds Movie (2016), and it’s sequel, The Angry Birds Movie 2 was released in 2019. The company offers multiple mobile games and has seven game studios – two in Espoo (Finland), one in Stockholm (Sweden), Copenhagen (Denmark), Montreal and Toronto (Canada), as well as a subsidiary in Izmir (Turkey) called Ruby Games, which was acquired in 2021. Rovio also has locations in China and the United States. Most of the employees are based in Finland where Rovio is headquartered. The company’s shares are listed on the main list of NASDAQ Helsinki stock exchange with the trading code ROVIO. (www.rovio.com )

Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

CONDITIONS FOR SALE OF RIKSBANK CERTIFICATES30.11.2021 09:30:00 CET | Press release

Bid date, 2021-11-30Auction date2021-11-30Settlement date2021-12-01Maturity Date2021-12-08Nominal amount570 billion SEKInterest rate, %0.00Bid times09.30-10.00 (CET/CEST) on the Bid dateConfirmation of bids to e-mailrbcert@riksbank.seThe lowest accepted bid volume1 million SEKThe highest accepted bid volume570 billion SEKAllocation Time10.15 (CET/CEST) on the Bid dateProjected minimum liquidity surplus during the term1140 billion SEKExpected excess liquidity at full allotment570 billion SEK Stockholm, 2021-11-30

Stratio raises $12M Series A to Scale AI-based Predictive Fleet Maintenance Platform using Real-time Augmented Intelligence30.11.2021 09:02:00 CET | Press release

Investment led by Forestay with participation from existing investor Crane Venture Partners to be used to further accelerate global expansion, increase R&D, boost product development, and double headcount by the end of 2022 LISBON, Portugal and LONDON, Nov. 30, 2021 (GLOBE NEWSWIRE) -- Stratio, the world’s leading real-time predictive fleet maintenance platform, today announced a $12M Series A funding round to further accelerate its growth. The investment, led by Forestay Capital, the Deep Tech and SaaS Venture Capital arm of Waypoint Capital, with participation from existing investor Crane Venture Partners, will be used to further accelerate the company’s global expansion, increase its R&D, speed up overall time-to-market, and double its headcount by the end of 2022. Stratio already has its technology deployed in 5 of the top 10 transportation companies in the world and has enabled transportation for 1.3 billion people so far. The company’s Annual Recurring Revenue (ARR) has grown 270

Not intended for U.S. Media – Solvay announces results of its tender offer to purchase bonds for cash30.11.2021 08:32:08 CET | Press release

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OF AMERICA AND THE DISTRICT OF COLUMBIA OR TO ANY U.S. PERSON OR IN OR INTO ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT. Solvay SA continues its deleveraging through the early redemption of bonds due in 2022 Brussels, 30 November 2021 --- Solvay SA (the “Issuer”) today successfully closed the tender offer on its outstanding EUR 750 million 1.625% bonds due 2022, by acquiring €372.5 million of senior debt, marking another step in the strong deleveraging that commenced in 2019. As part of its G.R.O.W. strategy, Solvay has prioritised cash generation and, since January 2019, has generated €2.3 billion operationally, both from improving

Sampo plc’s share buybacks 29/11/202130.11.2021 08:30:00 CET | Press release

SAMPO PLC STOCK EXCHANGE RELEASE 30/11/2021 at 08:30 am Sampo plc’s share buybacks 29/11/2021 On 29/11/2021 Sampo plc (business code 0142213-3, LEI 743700UF3RL386WIDA22) has acquired its own A shares (ISIN code FI0009003305) as follows: Sampo plc’s share buybacksAggregated daily volume (in number of shares)Daily weighted average price of the purchased shares*Market (MIC Code)33,86443.34AQEU34,08143.27CEUX4,67243.25TQEX109,28243.26XHELTOTAL181,89943.28 *rounded to two decimals On 1 October 2021, Sampo announced a share buyback programme of up to a maximum of EUR 750 million in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052. The programme, which started on 4 October 2021, is based on the authorization granted by Sampo's Annual General Meeting on 19 May 2021. After the disclosed transactions, the company owns in total 5,631,827 Sampo A shares representing 1.01 per cent of the total number of shares in Sampo plc. Detai

Aino Health AB (publ): Världsledande tillverkare väljer Aino Healths SaaS-lösning HealthManager30.11.2021 08:30:00 CET | Pressemelding

Stockholm 30 November, 2021. Ett världsledande tillverkningsföretag och global marknadsledare inom aggregat-, mineralbearbetnings- och metallraffineringsindustrin har valt att utöka användningen av Aino Healths SaaS-lösning HealthManager. Avtalet innehåller totalt 2 400 licenser, varav 1 300 är nya licenser. "Vi är mycket glada och stolta över att fortsätta och utöka en nyckelaktör inom tillverkningsindustrin som kund. Vi ser fram emot att tillsammans öka personalens välbefinnande och engagemang", säger Jyrki Eklund, VD Aino Health. HealthManager är Ainos egen SaaS-lösning som stödjer chefer med interna hälsorelaterade processer och frånvarohantering. Det erbjuder också rapporterings- och analysverktyg för att följa viktiga mätvärden relaterade till företagets hälsohantering. Målet med lösningen är att digitalisera arbetsförmågasprocesser och öka medarbetarnas engagemang. Om Aino Health (publ) Aino Health är den ledande leverantören av Software as a Service-lösningar inom Corporate Hea

Aino Health AB (publ): World leading manufacturer chooses Aino Health's SaaS-solution HealthManager30.11.2021 08:30:00 CET | Press release

Stockholm 30 November, 2021. A world leading manufacturing company and global market leader for sustainable technologies in the aggregates, minerals processing and metals refining industries, has chosen to extend the usage of Aino Health’s SaaS-solution HealthManager. The agreement contains a total of 2 400 licenses, out of which 1 300 are new licenses. ”We are very happy and proud to continue and extend a key player in the manufacturing industry as a customer. We look forward to together increase their personnel’s’ wellbeing and engagement”, says Jyrki Eklund, CEO Aino Health. HealthManager is Ainos own SaaS solution that supports managers with internal health-related processes and absence management. It also offers reporting and analytic tools to follow key metrics related to corporate health management. The goal of the solution is to digitalize working ability processes and to increase employee engagement. About Aino Health (publ) Aino Health is the leading supplier of Software as a