Rovio’s Profits Skyrocket, Q3 Report Shows

Rovio’s Profits Skyrocket, Q3 Report Shows

Rovio’s profits skyrocket, the company’s Q3 report shows. Alex Pelletier-Normand, Rovio CEO, reported that the company had made a lot of changes in Q3 2021, one of them being a new studio in Toronto, Canada.

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The profitability, Pelletier-Normand said, had been at a high level due to the higher revenue. Games revenue has increased 6.9% year on year to €68.6 million. The organic games revenue growth, the report stated, had been 5.3%.

Moreover, he stated that a significant income had come from Angry Birds Reloaded on Apple Arcade. Also, he added that the profit had been higher than usual due to the lower user acquisition costs. The user acquisition investments had been €18.1 million, according to the Q3 report.

Besides that, the report shows that Rovio’s key live games continued to perform strongly in Q3. For example, Angry Birds Friends kept on growing and had its best quarter since Q2 2017. Angry Birds Friends, Rovio’s popular game, has grown its gross bookings to €8.5 million.

According to the report, Rovio Group’s revenue was €71.4 million and has increased 5.1% year on year. The Group’s organic revenue growth was 3.6%.

Rovio’s Changes and Future Plans

Firstly, Rovio CEO stated that they had promoted Heini Kaihu from Head of HR to Rovio’s Chief Sustainability Officer. The creation of this position highlighted the importance of the company’s sustainability. The sustainability, Pelletier-Normand stated, was a part of their vision and commitment to be the leaders of a positive change within the industry.

After the promotion, the company opened a game studio in Toronto, Canada, led by Julie Beaugrand. Rovio stated that they were excited to see Julie join them and build a successful team that would add a new foothold for Rovio in the casual space.

Launching a new studio, Pelletier-Normand continued, was in line with the adjustments they had made to their portfolio building strategy. Their future plans, he explains, involve more casual and wide appeal games in order to maximize the company’s chances of achieving its long-term goals.

Moreover, the report stated that they would be moving away from mid-core, a category increasingly characterized by expensive development costs. Also, the CEO added that mid-core wasn’t a good choice for them because of the dependence on high-CPIs market niches.

Besides the Angry Birds franchise, the company has reduced marketing spending for Small Town Murders and Darkfire Heroes. This decision, the company admits, had a negative impact on these games’ revenues in Q3.

September has been a busy month for Rovio since the report also stated that the company had finalized the first part of the Ruby Games acquisition. The team had continued to show their talent and mastery in hyper-casual games, Rovio stated. Since the acquisition, Ruby Games had launched Forensic Master, which had reached the no.1 position in US download charts, Rovio said.

Finally, Rovio CEO reveals that the company is excited to enter the last quarter of 2021,  as the last quarter is the busiest season of the year. The fan engagement is higher and seasonal events are peaking in all of their key games, Pelletier-Normand explains.