In a recent financial report for the last fiscal quarter, Rovio has reported on falling profits and raised user acquisition costs. Just two months ago, the Finnish company, known for having created the celebrated Angry Birds franchise, was listed on the Helsinki stock exchange and valued at $1 billion (USD), since then the stock has been fairly stabile with its highest point reached at closing on Wednesday (November 22). But as the company has shown little progress, down 70% in operating profit in the last quarter compared the same period last year, it seems the market didn't take it too well and as of writing the shares are down 23.18% compared to Wednesday at closing.
This decline occurred despite an increase in revenues, from $ 50 million to $ 70.7 million. In any case, CEO Kati Levoranta said they are not worried about the company's future, since these events are in line with their growth strategy, given the investments of the last period.
"In line with our growth strategy, we significantly increased our investments in user acquisition, which predictably led to a decline in profitability," said Levoranta in a statement.
"Rovio's successful listing on the Helsinki stock exchange at the end of September was evidence of the strong interest in our growth strategy, also in the capital markets."
Loading next content