Angry Birds maker s profit soars but warns of spending hit
February 20, 2021 09:51 AM
Finnish publisher Rovio, creator of the Angry Birds games, on Friday reported higher 2020 profits but warned that upcoming investment could impact earnings in the "short-term," sending the share price tumbling.
Even though Rovio's annual revenue was down 5.8 percent at 272 million euros ($330 million), owing to a fall in income from licensed products and games, net profit more than doubled compared to 2019, to 32.1 million euros.
Operating profit jumped to 42.5 million euros, from 18.1 million in 2019.
However the company warned that it would increase investment to attract players and build growth which "may have implications on short-term profitability."
Shares in the Finnish publisher were down over 10 percent just after midday on the Helsinki Stock Exchange.
After years of success tied to its Angry Birds mobile games, Rovio hit a rough patch in 2015 and laid off a third of its staff.
It saw renewed success in 2016 with the release of a movie based on the popular franchise. Produced together with Sony Entertainment the movie brought in some $350 million worldwide.