Angry Birds maker Rovio needs new games to revitalize sales

Rovio grew rapidly after the 2009 launch of the original ‘Angry Birds’ game. (AFP)
Updated 16 November 2018

Angry Birds maker Rovio needs new games to revitalize sales

  • Rovio said tough competition and high marketing costs would put pressure on its full-year outlook
  • Rovio grew rapidly after the 2009 launch of the original ‘Angry Birds’ game

HELSINKI: Rovio Entertainment, the maker of the “Angry Birds” mobile game, on Friday said the company needed to come up with new games to drive growth and warned that sales would fall this year after reporting higher third-quarter profits.
The Finnish company, which listed its shares on the stock market in Helsinki last year, reported third-quarter adjusted operating profit of €10.4 million ($11.8 million), up from €4 million a year ago.
But Rovio said tough competition and high marketing costs would put pressure on its full-year outlook. The group said it expected 2018 sales to be between €280 million and €290 million, compared with a previous range of €260 million and €300 million. Last year, the company had revenues of €297 million.
“It is clear that we need new games in order to accelerate growth,” Rovio’s Chief Executive Kati Levoranta said in a statement, adding that the company planned to launch at least two new games next year and had another ten projects in the pipeline.
Rovio grew rapidly after the 2009 launch of the original “Angry Birds” game, in which players used slingshots to attack pigs who stole birds’ eggs. The company expanded into film with an Angry Birds movie in 2016, but more recently has been hit by its high dependency on the Angry Birds brand and tough competition.
After its initial public offering in September 2017, Rovio’s shares dropped 50 percent in February after the company said its sales could fall this year after 55 percent growth in 2017.
Rovio expects a movie sequel to boost business next year and the company has also stepped up investments in its spin-off company Hatch, which is building a Netflix-style streaming service for mobile games.
Full-year core operating profit margin is seen at 10-11 percent, up from a previous view of 9-11 percent.


Uber wins challenge against London operating license refusal

Updated 28 September 2020

Uber wins challenge against London operating license refusal

  • Uber was allowed to continue operating while the appeal was underway

LONDON: Uber can keep operating in London after the ride-hailing company won a court appeal on Monday against the refusal by transit regulators to renew its license.
The US company had challenged Transport for London’s decision in late 2019 not to renew its private hire vehicle (PHV) operating license over safety concerns involving imposter drivers.
“Despite their historical failings, I find them, now, to be a fit and proper person to hold a London PHV operator’s license,” Deputy Chief Magistrate Tanweek Ikram wrote in his decision.
Uber was allowed to continue operating while the appeal was underway. The decision came after a four-day hearing at Westminster Magistrates’ Court earlier this month.
Transport for London had decided two years ago to reject Uber’s application for a new license, citing several breaches that placed passengers and their safety at risk. The regulator noted, among other things, that unauthorized drivers were able to carry out thousands of rides by uploading their photos to other driver accounts.