Rovio Entertainment Corporation Stock Exchange Release October 28, 2022 at 9.00 a.m. EEST
Live games exhibiting power
July-September 2022 highlights
- Rovio group income elevated 8.4% to EUR 77.4 million (71.4). On a comparable (*) foundation the income declined by 4.6%.
- Group adjusted EBITDA declined to EUR 15.6 million (17.2) and adjusted EBITDA margin declined to twenty.2% (24.1).
- Group adjusted working revenue declined to EUR 12.1 million (14.3) and adjusted working revenue margin declined to fifteen.6% (20.0).
- Games gross bookings elevated by 6.2% to EUR 70.8 million (66.7). Comparable (*) gross bookings declined by 7.2%.
- Gross bookings of Angry Birds Dream Blast, Rovio’s second largest sport elevated year-on-year by 17.5% to EUR 17.6 million. The run-rate of Dream Blast elevated steadily all through the quarter and approached EUR 20 million per quarter, which is its finest degree since launch 12 months of 2019.
- Gross bookings of Angry Birds 2, Rovio’s largest sport, had been EUR 28.7 million and grew 7.8% year-on-year.
- User acquisition investments had been EUR 21.3 million (18.1) and 28.7% of games’ income (26.4%).
- Operating money move was EUR 8.6 million (16.7).
- Earnings per share was EUR 0.10 (0.16).
- 2022 outlook has been up to date.
January–September 2022 highlights
- Rovio group income elevated 16.1% to EUR 240.8 million (207.3). Comparable (*) income progress was 2.1%.
- Group adjusted EBITDA grew to EUR 44.3 million (38.2) and adjusted EBITDA margin was 18.4% (18.4).
- Group adjusted working revenue elevated to EUR 33.3 million (30.5) and adjusted working revenue margin decreased to 13.8% (14.7).
- Games gross bookings elevated by 13.5% to EUR 224.1 million (197.5). Comparable (*) gross bookings decreased by 1.0%.
- User acquisition investments elevated to EUR 73.2 million (56.6) and 31.5% of games’ income (28.3).
- Operating money move was EUR 37.9 million (26.7).
- Earnings per share was EUR 0.30 (0.32).
*) Comparable progress is calculated at fixed USD/EUR change price and together with Ruby Games just for the month of September.
Key figures
| 7–9/ | 7–9/ | Change, | 1–9/ | 1–9/ | Change, | 1–12/ | |
| EUR million | 2022 | 2021 | % | 2022 | 2021 | % | 2021 |
| Revenue | 77.4 | 71.4 | 8.4% | 240.8 | 207.3 | 16.1% | 286.2 |
| EBITDA | 12.2 | 16.9 | -28.1% | 37.6 | 37.4 | 0.5% | 50.8 |
| EBITDA margin | 15.7% | 23.7% | 15.6% | 18.0% | 17.7% | ||
| Adjusted EBITDA | 15.7 | 17.2 | -9.0% | 44.3 | 38.2 | 16.0% | 54.8 |
| Adjusted EBITDA margin, % | 20.2% | 24.1% | 18.4% | 18.4% | 19.1% | ||
| Operating revenue | 8.6 | 14.0 | -38.8% | 26.6 | 29.7 | -10.5% | 37.7 |
| Operating revenue margin, % | 11.1% | 19.6% | 11.0% | 14.3% | 13.2% | ||
| Adjusted working revenue | 12.1 | 14.3 | -15.6% | 33.3 | 30.5 | 9.1% | 43.7 |
| Adjusted working revenue margin, % | 15.6% | 20.0% | 13.8% | 14.7% | 15.3% | ||
| Profit earlier than tax | 10.2 | 14.6 | -30.0% | 30.4 | 31.1 | -2.3% | 40.3 |
| Capital expenditure | 1.3 | 0.9 | 41.6% | 4.6 | 2.7 | 69.7% | 4.0 |
| User acquisition | 21.3 | 18.1 | 17.7% | 73.2 | 56.6 | 29.3% | 77.2 |
| Return on fairness (ROE), % | 19.0% | 19.2% | 19.0% | 19.2% | 22.2% | ||
| Net gearing ratio, % | -81.3% | -72.6% | -81.3% | -72.6% | -77.4% | ||
| Equity ratio, % | 72.3% | 73.5% | 72.3% | 73.5% | 70.8% | ||
| Earnings per share, EUR | 0.10 | 0.16 | -35.3% | 0.30 | 0.32 | -6.0% | 0.41 |
| Earnings per share, diluted EUR | 0.10 | 0.16 | -35.8% | 0.30 | 0.32 | -6.6% | 0.41 |
| Net money flows from working actions | 8.6 | 16.7 | -48.6% | 37.9 | 26.7 | 41.8% | 44.0 |
| Employees (common for the interval) | 522 | 490 | 6.6% | 506 | 486 | 4.3% | 490 |
Unless in any other case said, the comparability figures in brackets consult with the corresponding interval within the earlier 12 months. Calculations and definitions are offered within the Performance Measures part.
The modifications in comparable currencies have been calculated by translating the reporting interval figures with the common USD/EUR change charges of the comparability interval for the US greenback dominated in-app-purchases in United States and world advert community gross sales.
Alex Pelletier-Normand, CEO
I’m happy to see that we’ve got continued to carry out properly in a difficult market within the third quarter. Our reported income grew 8.4% and our comparable income declined 4.6%, throughout a interval by which the US market declined over 15% year-on-year. The efficiency of our dwell games, particularly Angry Birds Dream Blast, the consolidation of Ruby Games, and a good fx supported these outcomes.
The similar market headwinds continued as within the earlier quarter. However, it’s attention-grabbing to notice that the quarter-over-quarter decline was just one% within the US in Q3, exhibiting a optimistic improvement after 5 consecutive quarters of decline. We proceed to imagine that long-term progress alternatives look enticing within the cellular gaming market.
We took benefit of the previous months to launch significant initiatives geared toward strengthening our place for additional progress because the market recovers.
Angry Birds Dream Blast main the way in which
One of those initiatives is an enhanced deal with our portfolio of dwell games. We elevated the resourcing of our dwell games and the depth of our dwell operations, and we will already see the advantages of such actions. For occasion, our second largest title, Angry Birds Dream Blast, grew double digits each year-on-year and quarter-on-quarter. This is an incredible achievement from the group, who’ve labored relentlessly to enhance the sport’s high quality and marketability since its launch. The run-rate of the sport grew to round EUR 20 million per quarter on the finish of September.
Angry Birds 2 continued to carry out properly, rising each quarter-on-quarter and year-on-year pushed by good dwell operations and strong UA efficiency. We have thrilling new content material coming to the sport later this 12 months. For occasion, for the primary time because the launch of the second Angry Birds Movie in 2019, we plan on introducing a brand new hen within the sport.
Angry Birds Friends declined barely from the earlier quarter. The sport was impacted by a problem with our accomplice Meta, inflicting some gamers to quickly lose entry to their progress. This resulted in a short-lived hole in revenues. After remedying the difficulty, we noticed the sport’s every day lively customers and income run-rate recovering.
Two new studios supporting the expansion
To help the expansion of our high dwell games, we’re opening a brand new studio in Barcelona, Spain. This initiative will widen our expertise pool notably in dwell operations and degree design – an exercise that’s at present extensively outsourced. Recruitment is ongoing and we purpose to rent 15 builders within the subsequent 12 months, who will help our Puzzle studio in Espoo.
In different thrilling information, in Montreal, a group of business veterans determined to collectively depart their former employer to hitch Rovio. They are specialised in very quick prototyping and market assessments and purpose at producing hybrid-casual games. They are internally referred to as “Studio 6” and we’re delighted to have them on board.
Healthy pipeline of latest titles
We’ve additionally made good progress in our new games improvement. Moomin: Puzzle & Design is creating as deliberate and enters the subsequent comfortable launch take a look at firstly of the 12 months. Our Puzzle Studio can also be engaged on a brand new Match-3 sport that builds upon the learnings of Small Town Murders. The sport appears promising and can have its first marketability and early retention take a look at in December. In Montreal Studio, we refocused our group on increasing Angry Birds past cellular with a multiplayer cross-platform sport focused for Gen Z. As of November seventh, the studio might be led by console gaming veteran Andréane Meunier who has over a decade expertise at Ubisoft. Ruby Games, Toronto and Copenhagen are additionally advancing properly of their new games. Overall, our pipeline is wholesome with 10 new titles in improvement throughout our studios.
In model information, as a part of our Angry Birds content material technique past games, the third season of Angry Birds Summer Madness was launched on Netflix in August. The success of Angry Birds animation was highlighted in a current Rovio commissioned client examine the place, amongst youngsters aged 12-16 within the USA, Angry Birds was the third most watched sequence on Netflix.
We are excited to enter the final quarter of the 12 months, which is often probably the most eventful season in games. We begin the quarter with good momentum in our high games and a stream of seasonal occasions to drive fan engagement throughout the portfolio.
With our two new studios, a robust deal with dwell games already exhibiting outcomes, and new games progressing properly, we see Rovio properly positioned to seize progress alternatives in 2023 and past. I’m excited to proceed main these efforts and I’m happy with Rovians’ resourcefulness in repeatedly discovering progress alternatives.
2022 up to date outlook
We expect the reported income to be considerably increased and the income at comparable fx to be considerably increased year-on-year. Depending on the pace of progress and the investments in consumer acquisition to gasoline that progress, particularly within the case of latest games, and our bigger investments in new games improvement, the adjusted working revenue is predicted to be decrease year-on-year.
Additional info on consumer acquisition investments in This fall 2022
The consumer acquisition investments for This fall 2022 are anticipated to be 28–33% of games revenues.
2022 earlier outlook
Building on the optimistic momentum in our high dwell games, the launch of Angry Birds Journey in January and having the complete good thing about the Ruby Games acquisition from the beginning of the 12 months, we expect sturdy topline progress for the 12 months. Depending on the pace of progress and the investments in consumer acquisition to gasoline that progress, particularly within the case of latest games, and our bigger investments in new games improvement, the adjusted working revenue is predicted to be decrease year-on-year.
Audiocast and convention name
Rovio will host an English language audiocast and cellphone convention on the Q3 2022 monetary outcomes, together with a Q&A session, for analysts, media and institutional traders at 14:00–15:00 EEST on October 28, 2022. The audiocast might be considered dwell at: https://investors.rovio.com/en and as a recording later the identical day.
Details for the cellphone convention:
https://call.vsy.io/access-8620
More info:
Alex Pelletier-Normand, CEO, tel. +358 40 485 8985 (media cellphone)
René Lindell, CFO, tel. +358 40 485 8985 (media cellphone)
Distribution: Nasdaq Helsinki, key media, https://investors.rovio.com/en
Rovio briefly
Rovio Entertainment Corporation is a world mobile-first games firm that creates, develops and publishes cellular games, which have been downloaded over 5 billion instances. Rovio is finest recognized for the worldwide Angry Birds model, which began as a preferred cellular sport in 2009, and has since developed from games to numerous leisure, animations and client merchandise in model licensing. Rovio has produced The Angry Birds Movie (2016), and its sequel, The Angry Birds Movie 2 was launched in 2019. The firm provides a number of cellular games and has 9 sport studios – two 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 additionally embrace a subsidiary in Izmir (Turkey) referred to as Ruby Games, which was acquired in 2021. Most of the workers are based mostly in Finland the place Rovio is headquartered. The firm’s shares are listed on the principle record of NASDAQ Helsinki inventory change with the buying and selling code ROVIO.
- Rovio Q3-2022_interim report
