Profits at ‘Angry Birds’ Maker Plunge

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By Douglas A. McIntyre Published
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The maker of one of the most popular games in the world has run out of steam. Angry Birds maker Rovio Entertainment reported a plunge in profits for 2014:

Rovio Entertainment Ltd, the creator of the globally loved Angry Birds brand, announced today preliminary financial results for the full 2014 calendar year. Rovio’s total consolidated full-year revenue amounted to €158.3 million, down year on year by 9% based on comparable figures. EBITDA was 11% of revenue, amounting to € 17.0 million. Rovio’s games and media businesses revenue grew by 16% and 19% to €110.7 million and € 6.2 million respectively. The year on year decline of consumer product licensing revenues impacted revenue and profit.

Also:

EBIT dropped from 36.5 million euro to 10 million euro Games revenue growth of €15.5 million was driven by the launch of six new games as well as exciting new content in the existing portfolio. In 2014 Rovio was one of the world’s top five most downloaded games companies, with close to 600 million new game downloads. The company’s gaming revenues and gaming-related advertising revenue remained strong. Media revenue growth was driven by advertising revenue.

What Rovio did not make so obvious was that game revenue from consumer products plunged from €73.1 million to €41.4 million.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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