Rovio saw its share value plummet by almost 50 per cent yesterday following the released of preliminary data on its performance in the fourth quarter of last year and outlook for this year, reports Helsingin Sanomat.
Shares in the games-first entertainment studio were valued at 4.94 euros at the close of trading on Thursday.
The share value has thereby deteriorated by over 6.5 euros since the initial public offering organised in September, 2017.
Investors were alarmed yesterday especially by weaker-than-anticipated net sales in the previous quarter and a lacklustre outlook for the ongoing year: Rovio revealed that it expects its net sales for this year to be around 260–300 million euros, an estimate that represents no increase from the 297 million euros posted in 2017.
Rovio will publish its full-year results statement on 2 March.
The entertainment studio reported an increase of over 10 million euros in its fourth-quarter net sales to 73.9 million euros. The net sales of its games business rose by almost 20 million euros to 66.1 million euros, while those of its brand licensing business fell by over 50 per cent to 7.8 million euros between October and December, 2017.
Rovio’s fourth-quarter operating profit more than doubled from 4.9 million euros in 2016 to 10.5 million euros in 2017.
Aleksi Teivainen – HT
Photo: Vesa Moilanen – Lehtikuva