March 19, 2015 at 15:33Angry Birds Stop Making Profits
The operating profit of Finnish mobile game company Rovio fell 73% in 2014. The main reason is a drop in demand for related products of the company: toys, clothes, drinks. Recently, the main product of Rovio Angry Birds is rapidly losing popularity, according to Business Insider.
The mobile games industry is highly variable: any new game can become a sensation in one day, and then just as quickly leave the stage. Rovio is now experiencing this effect on himself. In 2012, the company's operating profit was $ 82.3 million, in 2013 - $ 39.1 million, and in 2014 fell to $ 10.7 million. Total sales for the year decreased by 9% and amounted to $ 169.6 million. Over the past year, Rovio reduced 14% of its employees.
“Sales of related products do not meet the expectations of the company, and we, of course, are not satisfied with the licensing results,” said Rovio CEO Pekka Rantala. He believes that the company should not have become hostage to one brand and fully count on its success.
However, the proceeds from the new mobile games Jolly Jam and Angry Birds Stella Pop! increased by 16% to $ 118.5 million. And the number of downloads of the company's mobile games last year exceeded 600 million.
Rovio’s ambitions are not limited to toys and other goods: as part of the development of the Angry Birds brand, the company is simultaneously preparing series and a full-length cartoon, which is expected to premiere. in 2016. In this direction, Rovio focuses on entertainment brands such as Walt Disney.
Over the past 5 years, the company was managed by Michael Head. Pekka Rantala was admitted to Rovio in June 2014 as a Commercial Director. In January, Rantala took over as CEO, and Head led Rovio Animation Studios, which is engaged in animation projects.
According to experts, the personnel changes are an attempt to turn the tide with a fall in company profits.
The mobile games industry is highly variable: any new game can become a sensation in one day, and then just as quickly leave the stage. Rovio is now experiencing this effect on himself. In 2012, the company's operating profit was $ 82.3 million, in 2013 - $ 39.1 million, and in 2014 fell to $ 10.7 million. Total sales for the year decreased by 9% and amounted to $ 169.6 million. Over the past year, Rovio reduced 14% of its employees.
“Sales of related products do not meet the expectations of the company, and we, of course, are not satisfied with the licensing results,” said Rovio CEO Pekka Rantala. He believes that the company should not have become hostage to one brand and fully count on its success.
However, the proceeds from the new mobile games Jolly Jam and Angry Birds Stella Pop! increased by 16% to $ 118.5 million. And the number of downloads of the company's mobile games last year exceeded 600 million.
Rovio’s ambitions are not limited to toys and other goods: as part of the development of the Angry Birds brand, the company is simultaneously preparing series and a full-length cartoon, which is expected to premiere. in 2016. In this direction, Rovio focuses on entertainment brands such as Walt Disney.
Over the past 5 years, the company was managed by Michael Head. Pekka Rantala was admitted to Rovio in June 2014 as a Commercial Director. In January, Rantala took over as CEO, and Head led Rovio Animation Studios, which is engaged in animation projects.
According to experts, the personnel changes are an attempt to turn the tide with a fall in company profits.