Rovio Reports A 160% Growth In Profits For 2020

Aug 17, 2020 Games

Rovio Reports A 160% Growth In Profits For 2020

Rovio is one of the oldest and biggest phone game developers in the world, as they are the proud owners of the Angry Birds series. Angry Birds, at one stage was the biggest smartphone game in the world by far, and it got so popular that it had its own TV shows and a whole movie even. However, due to the decline in movie sales in 2020, Rovio actually faced a decline in overall revenue generated. The decline faced was about 3.6 percent from last year.

But that’s not the whole story though. Rovio did see an adjusted profit growth of about 160.1 percent - which is a pleasant sight for the Finnish game developer. The company has credited this growth in profit to their games doing exceptionally well in this year’s two quarters, especially due to the coronavirus as players were spending more time at home - and it also helped them cut costs.

This is what the company had to say about their success in 2020:

"We had an eventful Q2 and continued delivering on our strategy on multiple fronts. We reached record high Games revenue driven by the strong performance of our key games. Our profitability improved significantly year-on-year due to lower user acquisition investments and higher games gross bookings. The strong profitability led to the highest operating cash flow since Q418," said Rovio CEO Kati Levoranta.

"In June, we launched a new narrative puzzle game called Small Town Murders. Our aim is to scale up the user acquisition of the game gradually. Rovio's largest game, Angry Birds 2, grew quarter-on-quarter thanks to game updates, seasonal events and increased player engagement that can be attributed to Covid-19, especially in April.

"The overall impact of Covid-19, which was visible in a higher level of downloads, daily active users and player engagement, peaked late April. From May onwards, these KPIs started to normalise. At the same time, successful game improvements have led to somewhat higher monetisation compared to the beginning of the year and stable revenues in our key games."

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