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Rovio Entertainment Corp.: Q1 interim report: Angry Birds


Rovio Entertainment Corporation      Stock Exchange Release      April 28, 2023 at 9.00 a.m. EEST

Q1 interim report: Angry Birds Dream Blast reached new heights

January–March 2023 highlights

Rovio’s group revenue declined by 10.5% to EUR 76.0 million (85.0). On a comparable (*) basis, revenue declined by 13.2%. The comparable decrease was due to the high spike of Angry Birds Journey launch in Q1’22.Group EBITDA increased to EUR 12.1 million (11.1), and the EBITDA margin increased to 15.9% (13.1).Group adjusted EBITDA decreased to EUR 12.1 million (13.6), and the adjusted EBITDA margin declined to 15.9% (16.0). Group operating profit increased to EUR 8.8 million (7.5), and the operating profit margin increased to 11.6% (8.8). Group adjusted operating profit declined to EUR 8.8 million (10.0), and the adjusted operating profit margin declined to 11.5% (11.8). Games’ gross bookings declined by 10.9% to EUR 72.0 million (80.8). Comparable (*) gross bookings declined by 13.6%. Sequentially, comparable games’ gross bookings grew by 0.9%, while the US mobile gaming market grew by 1.6% (**).Rovio’s biggest game in Q1 2023 was Angry Birds Dream Blast, which saw its gross bookings grow by 67.7% to EUR 24.9 million (14.9).User acquisition investments decreased to EUR 23.9 million (31.1), representing 32.3% of games’ revenue (37.8). Operating cash flow decreased to EUR -8.8 million (14.0) due to changes in working capital (bonus payments in March and the New Mexico lawsuit settlement payment in January).Earnings per share increased to EUR 0.10 (0.07). Adjusted earnings per share was stable at EUR 0.10 (0.10).Events after the review period: On April 17, 2023, Sega announced a recommended cash offer of EUR 9.25 per share to the shareholders and EUR 1.48 per option to the option holders of Rovio. The total value of the offer, based on all 76,179,063 issued and outstanding shares in Rovio and all 742,300 issued and outstanding options under the Company’s Stock Options 2022A plan, amounts in aggregate to approximately EUR 706 million. The Board of Directors of Rovio, represented by a quorum comprising all members of the Board of Directors, has unanimously agreed to recommend that the shareholders and the option holders of Rovio accept the offer. Shareholders in Rovio who in aggregate hold Shares corresponding to approximately 49.1 percent of the outstanding Shares and votes in Rovio, have irrevocably undertaken to accept the offer, subject to certain customary conditions. The offer is currently expected to be completed during the third quarter of 2023.

*) Comparable growth is calculated at constant USD/EUR exchange rates.
**) Source:

Key figures

  1–3/ 1–3/ Change, 1–12/ EUR million 2023 2022 % 2022 Revenue 76.0 85.0 -10.5% 317.7 EBITDA 12.1 11.1 8.8% 43.3 EBITDA margin 15.9% 13.1%   13.6% Adjusted EBITDA 12.1 13.6 -11.4% 53.9 Adjusted EBITDA margin, % 15.9% 16.0%   17.0% Operating profit 8.8 7.5 17.5% 28.6 Operating profit margin, % 11.6% 8.8%   9.0% Adjusted operating profit 8.8 10.0 -12.2% 39.2 Adjusted operating profit margin, % 11.5% 11.8%   12.3% Profit before tax 9.2 7.6 20.1% 30.6 Adjusted profit for the period 7.2 7.5 -2.9% 31.4 Capital expenditure 2.3 2.1 9.0% 7.0 User acquisition 23.9 31.1 -23.3% 96.5 Return on equity (ROE), % 14.7% 19.8%   14.4% Net gearing ratio, % -65.7% -80.2%   -72.7% Equity ratio, % 83.4% 70.3%   79.3% Earnings per share, EUR 0.10 0.07 30.3% 0.30 Earnings per share, diluted EUR 0.09 0.07 29.1% 0.30 Adjusted earnings per share, EUR 0.10 0.10 -5.0% 0.42 Net cash flows from operating activities -8.8 14.0 -163.2% 49.9 Employees (average for the period) 554 494 12.1% 513

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year. Calculations and definitions are presented in the Performance measures section.

The changes in comparable currencies have been calculated by translating the reporting period figures with the average USD/EUR exchange rates of the comparison period for the US dollar denominated in-app-purchases in the United States and for global ad network sales.

Alex Pelletier-Normand, CEO
In the first quarter of 2023, Angry Birds Dream Blast continued its strong growth and reached a new revenue record, growing by 67.7% compared to the same period last year and by 15.3% compared to the previous quarter. Looking at our performance as a whole, our comparable gross bookings grew by 0.9% sequentially, overall in line with the US mobile gaming market, slowly recovering from the weaker than normal holiday season in December. During the same period, we were pleased to see our new games taking leaps forward.

Our comparable revenue decreased by 13.2% against the same period in the previous year, largely due to the launch of Angry Birds Journey in early 2022 affecting the comparison figures. Our adjusted operating profit declined in line with the lower revenue.

Regarding our new game titles, we have made great progress with Moomin: Puzzle & Design and Bad Piggies 2, among others. The Moomin game showed promising results in the mid-term retention test in the Japanese market in Q1, remaining on track for global launch. Bad Piggies 2, a physics-based puzzle game developed by our Stockholm studio, is starting its soft launch. This too is a great achievement for us. The game is totally novel and highly anticipated by the fans.

The Angry Birds brand continues to grow in reach and fandom. We reached a new milestone with the Angry Birds YouTube channel hitting 6 million subscribers. The implementation of our loyalty program and online hub ‘Red’s club’ progresses as planned and is expected to roll out during the summer.

Last week, Sega announced a cash tender offer to acquire all shares and options of Rovio. Rovio’s Board of Directors has agreed to recommend the offer, and 49.1% of shareholders have irrevocably undertaken to accept it, subject to certain customary conditions. The offer provides concrete evidence that our mission to craft joy with player-focused gaming experiences that last for decades forms an attractive strategy for the future. We are thrilled at the idea of using our expertise and tools to bring even more joy to our players, enhancing and expanding Rovio’s and Sega’s vibrant IPs. Red the Angry Bird and Sonic the Hedgehog are two globally recognized and iconic characters made by two remarkably complementary companies, with a worldwide reach that spans mobile, PC, console, and beyond. This planned transaction supports the cross-platform expansion of our IP using Sega’s capabilities, while enabling Sega to utilize our distinctive know-how in live operations and our growth platform Beacon to bring their titles to the global mobile gaming market.

For the time being, we continue our daily work as usual, operating and improving our live games while crafting ambitious and innovative new games for our players. Looking further ahead, we remain strongly confident in our stand-alone strategy; however, combining the strengths of Rovio and Sega presents an incredibly exciting future.

2023 outlook (unchanged)
We expect our comparable revenue and adjusted operating profit to be at last year’s level.

Additional information on user acquisition investments in Q2 2023
User acquisition investments in Q2 2023 are expected to be 27–32% of games’ revenues.

Audiocast and conference call
Rovio will host an audiocast and phone conference on the first quarter 2023 financial results, including a Q&A session, for analysts, media and institutional investors in English on April 28, 2023 at 14:00–15:00 EEST. The audiocast can be viewed live at and as a recording later the same day.

Dial-in details for the phone conference

More information
Alex Pelletier-Normand, CEO, tel. +358 40 730 3442 (Investor Relations phone)
René Lindell, CFO, tel. +358 40 730 3442 (Investor Relations phone)

Nasdaq Helsinki, key media,

Rovio in brief
Rovio Entertainment Corporation is a global mobile-first games company that creates, develops and publishes mobile games, which have been downloaded over 5 billion times. Rovio is best known for the global Angry Birds brand, which started as a popular mobile game in 2009, and has since evolved from games to various entertainment, animations and consumer products in brand licensing. Rovio has produced The Angry Birds Movie (2016), and its sequel, The Angry Birds Movie 2 was released in 2019. The company offers multiple mobile games and has eight game studios – one in Espoo (Finland), one in Stockholm (Sweden), one in Copenhagen (Denmark), one in Barcelona (Spain), two in Montreal and one in Toronto (Canada). The studios also include a subsidiary in Izmir (Turkey) called Ruby Games, which was acquired in 2021. Most of the employees are based in Finland where Rovio is headquartered. The company’s shares are listed on the main list of NASDAQ Helsinki stock exchange with the trading code ROVIO. 


Rovio Q1 2023 Interim report

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