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23 Mar 2015
Rovio reports stunted growth as Angry Birds profits take a nosedive
By Tom Anstey
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Rovio and Angry birds have taken a hit over the past year, though the company still recorded a €10m profit
Photo: Rovio
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Avian IP Angry Birds has experienced a sharp drop in popularity as seen by creator Rovio’s company report, which shows a 73 per cent fall in operating profits to €10m (US$10.m, £7.2m) over the past year.
The figures compare poorly to the much more favourable profits of €76.8m (US$82.9m, £55.5m) in 2012 and €36.5m (US$39.3m, €36.5m) in 2013. Along with a 9 per cent drop in total sales for 2014, there was a sharp decline in merchandise sales. But it wasn’t all doom and gloom for the waning franchise, as revenue from mobile games rose 16 per cent to €110.7m (US$119.5m, £80m) in the 12-month period, with new offerings including Jolly Jam and Angry Birds Stella Pop! helping total annual downloads reach 600m.
As an attraction, Angry Birds has proved to be a popular IP. Last year alone, nine Angry Birds FECs were announced for China, while an educational concept came to Dubai and the brand made its debut at Thorpe Park in the UK among other openings.
Despite the recent setbacks, Rovio is optimistic that a 3D movie scheduled for 2016 will breathe life back into the brand. The film, which is being distributed by Columbia Pictures and will be released in May 2016, will cost about €74.6m (US$80m, £54m) to produce. Rovio has previously stated it wants to become an entertainment brand on par with the likes of Walt Disney, with Angry Birds playing a major part in that aim.
“The upcoming Angry Birds feature film is getting very positive reactions from major retail and license partners as well as from consumer focus groups,” said Rovio chief executive, Pekka Rantala.
“This will have a positive impact on licensing in the coming years. In the next few months, we expect major announcements of partnerships in the licensing space.”
Rantala added in his statement that despite the fall in profits, he is “confident” about the year ahead, saying: “With new simplified organisation and clearer vision, we will be back to the path of growth in 2015.
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