September 12, 2019 / 6:26 AM / 6 days ago

Angry Birds maker Rovio cuts 2019 outlook on higher investments

Sept 12 (Reuters) - Finland’s Rovio Entertainment , the maker of Angry Birds games, cut its 2019 sales and profit outlook on Thursday, citing increasing investments and lower-than-expected revenue from brand licensing and from older games.

The company said it now sees 2019 revenue at 295-310 million euros ($324.9 million to $341.4 million), compared with an earlier forecast of 300-330 million euros, while operating profit margin for the year would be 5-8%, compared with its previous outlook of 9-11%.

The warning comes only a month after it reiterated its 2019 outlook.

Rovio said its new games Angry Birds Dream Blast and Sugar Blast were performing well and the company was investing more than earlier planned in their growth.

“We see a window of opportunity in the market to scale up our top games and we are seizing this opportunity,” Rovio’s CEO Kati Levoranta said in a statement.

“The increase in user acquisition investments naturally leads to a lower profitability for 2019 and 2020 as we work towards building growth and long-term cash flows,” she said. ($1 = 0.9080 euros) (Reporting by Tarmo Virki in Tallinn; editing by Uttaresh.V)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below