Rovio Entertainment Maintains Guidance as Takeover Nears Completion
Rovio Entertainment has reiterated its full-year guidance as it nears completion of its takeover by Sega Sammy Holdings. The Finnish company, known for its popular Angry Birds mobile-gaming franchise, agreed to a €706 million ($775.4 million) takeover deal earlier this year. Sega Sammy has now received acceptances for the deal from shareholders holding 96.3% of the shares.
According to Rovio Chief Executive Alexandre Pelletier-Normand, "We are heading towards the end of Rovio's journey as a listed company...Now it is time for the company to start a new chapter."
In terms of financials, Rovio reported a net profit of €6.8 million compared with €9.7 million in the previous year. Revenue also saw a decline of 7.4% to €72.6 million. However, Rovio is optimistic and expects full-year comparable revenue and adjusted operating profit to align with the levels achieved in 2022.
Notably, user acquisition investments in the quarter—the cost of advertising and marketing to attract players—rose 2.4% to €21.4 million. However, total gross bookings fell to €68.7 million from €72.4 million. Gross bookings represent in-app purchases and in-app advertising sales.
Going forward, Rovio anticipates that user acquisition investments in the third quarter will account for approximately 25% to 30% of games' revenue.
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