CEO Kati Levoranta says she is delighted that Rovio’s revenue and profit developed positively in 2016.
CEO Kati Levoranta says she is delighted that Rovio’s revenue and profit developed positively in 2016.

Rovio re-captured its growth momentum in 2016.

The Helsinki-based game and entertainment studio announced on Tuesday that its annual revenue improved by 48.2 million year-on-year to 190.3 million euros and operating earnings by 38.6 million year-on-year to 17.5 million euros in 2016, largely on the wings of resurgent interest in its flagship franchise, Angry Birds.

Rovio thus exceeded both its growth and profitability targets, highlights Kati Levoranta, the chief executive of the game and entertainment company.

“With the all-time high performance of our games portfolio and the success of The Angry Birds Movie, I am very happy to see Rovio’s revenue and profit developing very positively,” she says in a press release.

The games division not only generated 159 million euros in revenue, representing a year-on-year increase of 45.5 million euros, but also successfully restored its profitability, with its operating result improving by 25.6 million from the previous year to 29.6 million euros.

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Rovio’s best-performing games last year included Angry Birds 2, Angry Birds Friends and Angry Birds POP.

Levoranta reveals that she is particularly proud that two of the game division’s titles – Angry Birds 2 and Angry Birds Blast, the latest addition to the long-running series – rank inside the 50 highest-grossing games in the United States.

Rovio’s animation division, meanwhile, reported an increase of 2.7 million in gross revenues to 31.3 million euros and one of 10.9 million in operating earnings to -2.2 million euros.

The highlight of the year for the animation division was the global release of its feature debut, The Angry Birds Movie. The animated feature earned almost 350 million dollars at the global box office, opened number-one in 52 countries and became the third largest foreign animation ever in China.

Rovio reminds that most of the revenues generated by the animated feature will not be reported until 2017–2018.

The game and entertainment company states that it will continue investing in the development and performance marketing of games in 2017. The resurgent interest in its franchise and projected revenues from both brand licensing and the animated feature, it estimates, should support its attempts to improve profitability and continue growth also in the coming years.

Rovio’s operating result slipped into the red in 2015 for the first time since the angry birds took flight in 2009, prompting the company to shed almost a half of its staff in order to recapture its growth momentum.

Its dependence on Angry Birds, however, casts doubts future, according to analysts interviewed by Reuters.

Aleksi Teivainen – HT
Photo: Roni Rekomaa – Lehtikuva