- The net proceeds from Rovio in 2013 were much lower than those obtained in 2012.
- In addition to applications, Rovio launched numerous merchandising items with game characters.
- The sales of these licensed products account for almost 50% of all profits.
Following the success it achieved Angry Birds , which have been over 10 million downloads, it seems they are not good times for the track creator, Rovio. The financial data of last year, which have been known relatively recently, show that 2013 was not a good year for them.
Recall that Rovio, Angry Birds also to introduce mobile gaming devices, expanded his business and began launching products in other sectors, such as commercial, putting the sale teddies, clothes, accessories ... based on the famous game birds and pigs .
Big drop in net profits of the company
"We have invested in new business areas, such as animation and video distribution, venturing into new business models in games, and consolidate our strong market position in consumer products licensing" said CFO Rovio , Herkko Soininen, who has named 2013 as "a year of creation of the foundation."
And while all this has been done, does not mean it has been a good year. In fact it has been one of the worst in the company since its founding, and he has had a drop of 52% from the previous year in 2012 Rovio reported net income of $ 77 million, and in 2013 the figure dropped to $ 37 million.
"We have invested in new business areas, such as animation and video distribution, venturing into new business models in games, and consolidate our strong market position in consumer products licensing" said CFO Rovio , Herkko Soininen, who has named 2013 as "a year of creation of the foundation."
And while all this has been done, does not mean it has been a good year. In fact it has been one of the worst in the company since its founding, and he has had a drop of 52% from the previous year in 2012 Rovio reported net income of $ 77 million, and in 2013 the figure dropped to $ 37 million.
Increased competition can be one of the factors that have influenced falling profits
The merchandising of Angry Birds generate almost 50% of company profits. We assume that the other 50% is generated, for the most downloads of various birds of the famous game.
The problem is that in recent years have appeared strong competitors such as Candy Crush saga, which has managed to snag as many people as to the owner company, King, has gone public and is valued at 7,000 million dollars.
The merchandising of Angry Birds generate almost 50% of company profits. We assume that the other 50% is generated, for the most downloads of various birds of the famous game.
The problem is that in recent years have appeared strong competitors such as Candy Crush saga, which has managed to snag as many people as to the owner company, King, has gone public and is valued at 7,000 million dollars.
But as we read in The New York Times , Rovio is not the only game development company having problems. Zynga, for example, also has his own from his multimillion-dollar IPO in 2011, as investors worried that the company is too dependent on the small number of games they currently have. As we see are not good times for some big game companies. We'll see how the case develops.
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