Angry Birds maker’s profits sink despite jump in sales

Angry Birds maker Rovio said it invested €22 million in top performing games, hoping this would boost its profits in future. (Reuters)
Updated 23 November 2017
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Angry Birds maker’s profits sink despite jump in sales

HELSINKI: Finland’s Rovio Entertainment, creator of the popular smartphone game Angry Birds, on Thursday posted a profit loss for the third quarter despite rising sales, as it increases its investments with a view to boost its winnings in future.
Sales reached €70.7 million (SR311.49 million) in the third quarter compared to €50 million the previous year, but year-on-year the company lost €800,000.
Earnings before interest, tax, depreciation and amortization were €6.1 million compared to €8.1 million the previous year.
Rovio said it invested €22 million in top performing games, hoping this would boost its profits in future.
“We expect the payback time for these investments to be 8 to 10 months,” Rovio CEO Kati Levoranta said in a statement, adding the launch of the new Angry Birds Match game could become one of the company’s “best performing.”
Rovio has accelerated its diversification in recent years.
The release of the “Angry Birds” movie (2016), produced by Sony Entertainment, was a huge success as it grossed $350 million worldwide, and is expected to help bolster Rovio profits in 2017 and 2018.
The company also runs “Angry Birds” theme parks in several countries, including Finland, China and Spain.
It oversees the publication of children’s books in a dozen languages on the famous birds while boasting an average of 80 million active players per month and 11 million per day.


German industry groups warn US on tariffs before Trump-Juncker meeting

Updated 22 July 2018
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German industry groups warn US on tariffs before Trump-Juncker meeting

  • Washington imposed tariffs on steel and aluminum imports from the EU, Canada and Mexico on June 1
  • Trump is threatening to extend them to EU cars and car parts

BERLIN: German industry groups warned on Sunday, before European Commission President Jean-Claude Juncker meets US President Donald Trump this week, that tariffs the United States has imposed or is threatening to introduce risk harming America itself.
Citing national security grounds, Washington imposed tariffs on steel and aluminum imports from the EU, Canada and Mexico on June 1 and Trump is threatening to extend them to EU cars and car parts. Juncker will discuss trade with Trump at a meeting on Wednesday.
“The tariffs under the guise of national security should be abolished,” Dieter Kempf, head of Germany’s BDI industry association said. Juncker should tell Trump that the United States would harm itself with tariffs on cars and car parts, he told Welt am Sonntag newspaper.
The German auto industry employed more than 118,000 people in the United States and 60 percent of what they produced was exported. “Europe should not let itself be blackmailed and should put in a confident appearance in the United States,” he added.
German Economy Minister Peter Altmaier told Deutschlandfunk radio on Sunday he hoped it was still possible to find a solution that was attractive to both sides. “For us, that means we stand by open markets and low tariffs,” he said
He said the possibility of US tariffs on EU cars was very serious and stressed that reductions in international tariffs in the last 40 years and the opening of markets had resulted in major benefits for citizens.
EU officials have tried to lower expectations about what Juncker can achieve, and played down suggestions that he will arrive in Washington with a novel plan to restore good relations.
Altmaier said it was difficult to estimate the impact of any US car tariffs on the German economy, but added: “Tariffs on aluminum and steel had a volume of just over six billion euros. In this case we would be talking about almost ten times that.”
He said he hoped job losses could be avoided but noted that trade between Europe and the United States made up around one third of total global trade.
“You can imagine that if we go down with a cold in the German-American or European-American relationship, many others around us will get pneumonia so it’s highly risky and that’s why we need to end this conflict as quickly as possible.”
Eric Schweitzer, president of the DIHK Chambers of Commerce, told Welt am Sonntag the German economy had for decades counted on open markets and a reliable global trading system but added: “Every day German companies feel the transatlantic rift getting wider.”