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.
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.