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)

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.