Rovio Returns to Profitable Growth

RovioLogoRovio Entertainment returned to profitable growth in 2016, which saw a record performance in the company’s Games division and the blockbuster release of The Anry Birds MovieGross revenue of Rovio grew by 34 percent to $200.29 million (converted from 190.3 mEUR). Earnings Before Interest and Taxes (EBIT) improved to $18.42 million (converted from 17.5 mEUR), which was negative $22.21 in 2015 (converted from -21.1 mEUR). 

Rovio’s Games division made $167.35 million (converted from 159 mEUR) in 2016. Along with the revenue growth, the division had a $20.63 million profit (converted from 29.6 mEUR), giving a profit margin of 19 percent. The growth of the Games division is based on extended life cycles and improved performance metrics of key games, according to Rovio. The company’s best performing games last year included Angry Birds 2, Angry Birds Friends, and Angry Birds POP, all with increased revenues year on year.

The gross revenue of the Animation division was $32.94 million (converted from 31.3 mEUR). The highlight of Rovio Animation’s division last year was the global release of The Angry Birds Movie, hitting nearly $360 million at the worldwide box office.

This year, Rovio Entertainment will continue to invest in development and performance marketing of games. The company sees opportunities to improve profitability while staying on its growth track, including an uplift in the Angry Birds brand, licensing activities, and revenues from The Angry Birds Movie.