Outlook and guidance
Quarterly figures Q1 2016 - Q4 2019
Rovio's financial highlights

Outlook for 2020

During 2020 we aim to launch 1-3 new games. The timing of new game launches depends on how the games progress in soft launch. Therefore, we do not give a full year 2020 revenue guidance. We start the year at a lower user acquisition level than we ended last year. Due to lower user acquisition investments and the planned cost savings in Hatch Entertainment Ltd., our adjusted operating profit improves.

Basis for outlook

Our strategy is to seek growth in the Games business through improving the performance of our key games and developing new games.

Brand Licensing segment is optimized for profit at a lower revenue which is expected to decline approximately 50% year-on-year in 2020.

Hatch Entertainment annualized expenses are expected to be approximately EUR 5 million (2019: EUR 10.9 million) on an adjusted basis after restructuring and aligning with its new strategy.

More detailed outlook per games category is given below:

Grow: We believe Angry Birds Dream Blast will grow on an annual basis but starts the year at a lower quarterly run-rate compared to the end of 2019. The game has a strong feature roadmap focusing on improvements to long term retention and monetization. We are continuing to develop Sugar Blast through live operations for its core audience and improve retention and monetization in order to scale the game up.

Earn: The revenues of Angry Birds 2 stabilized despite much lower user acquisition investments y-on-y. We further focus on improving the performance of the game through introducing new updates that increase engagement with our core users. The revenue of other games (Angry Birds Match, Angry Birds Friends and Angry Birds Pop) is expected to continue decline at a steady slow pace. We have lowered or stopped user acquisition investments into these three games.

Catalogue: We expect these games to continue declining over time. They still receive substantial organic downloads, but the active user base and revenues are expected to decline over time as we do not develop these games further.

New games: We aim to launch 1-3 new games in 2020. Currently we have three games in soft launch and several games in other phases of production.

Games in soft launch are available in a selected number of countries and operated with a limited number of gamers. Soft launch games have advanced far in the game development process. They are being tested and developed in order to verify their commercial potential and scalability. There is no guarantee that games in soft launch will be published. 

 

Quarterly figures

Q1 2016 - Q4 2019

Rovio Group

EUR million Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Revenue 34.1 44.5 50.0 63.2 66.3 86.2 70.7 73.9 65.7 71.8 71.0 72.7 70.9 71.8 74.8 71.6
                                 
EBITDA 2.4 8.6 8.5 15.9 10.2 29.7 6.1 14.0 14.3 9.3 15.0 9.3 10.5 9.6 9.6 2.6
                                 
Depreciation & Amortization 1.7 2.5 3.4 10.9 4.9 15.6 4.5 3.6 5.1 3.3 4.6 3.4 3.0 4.3 4.2 2.7
                                 
Operating profit (EBIT) 0.7 6.1 5.2 4.9 5.3 14.1 1.6 10.4 9.2 6.0 10.4 5.9 7.5 5.3 5.4 0.1
                                 
Adjusted EBITDA 2.4 8.6 8.5 15.9 10.2 31.6 8.6 14.1 14.6 9.3 15.0 8.6 10.5 9.6 9.6 2.9
Adjustments to EBITDA 0.0 0.0 0.0 0.0 0.0 2.0 2.5 0.1 0.3 - - -0.7 - - - 0.3
                                 
Adjusted EBIT 0.7 6.1 5.2 4.9 5.3 16.1 4.0 10.5 9.6 6.0 10.4 5.3 7.5 5.3 5.4 0.2
Adjustments to EBIT 0.0 - 0.0 - 0.0 2.0 2.5 0.1 0.3 - - -0.7 - - - 0.3

Games

EUR million Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
                                 
Revenue 29.7 37.2 45.7 46.5 56.6 61.3 63.9 66.1 56.8 65.3 63.1 65.2 66.3 65.4 66.4 66.7
                                 
User Acquisition 2.3 2.8 5.4 7.7 16.4 15.1 22.2 15.9 14.6 22.9 17.8 23.3 23.7 21.3 27.1 27.5
                                 
EBITDA 6.5 10.3 12.4 10.5 9.0 13.4 6.7 14.0 10.3 9.2 12.7 8.3 11.2 10.5 8.3 5.7
                                 
Depreciation & Amortization 0.9 1.7 2.4 5.9 0.4 2.5 0.9 0.9 0.6 0.5 0.5 0.6 1.0 1.1 1.1 1.1
                                 
Operating profit (EBIT) 5.6 8.7 10.0 4.7 8.6 10.9 5.8 13.1 9.8 8.7 12.1 7.8 10.1 9.5 7.2 4.5
                                 
Adjusted EBITDA 6.5 10.3 12.4 10.5 9.0 13.5 6.7 14.0 10.6 9.2 12.7 8.3 11.2 10.5 8.3 5.7
Adjustments to EBITDA - - - - 0.0 0.1 - - 0.3 - - - - - -  
                                 
Adjusted EBIT 5.6 8.7 10.0 4.7 8.6 11.0 5.8 13.1 10.1 8.7 12.1 7.8 10.1 9.5 7.2 4.5
Adjustments to EBIT - - - - 0.0 0.1 - - 0.3 - - - - - -  

Brand Licensing

EUR million Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
                                 
Revenue 4.4 7.3 4.3 16.7 9.7 24.9 6.7 7.8 8.9 6.5 7.9 7.5 4.6 6.4 8.4 4.9
Consumer product 3.1 6.0 3.2 8.2 2.8 2.5 1.9 4.0 1.7 2.4 1.5 2.8 1.4 1.1 2.8 2.8
Content licensing 1.3 1.3 1.2 8.5 6.9 22.4 4.8 3.8 7.1 4.0 6.4 4.6 3.2 5.2 5.6 2.1
                                 
EBITDA -1.9 0.9 -1.9 8.7 3.6 18.8 4.0 3.7 6.6 3.6 5.6 5.0 2.5 3.7 6.0 1.5
                                 
Depreciation & Amortization 0.9 0.8 0.9 5.0 4.5 13.0 3.6 2.6 4.4 2.6 4.0 2.7 1.9 3.1 3.0 1.5
                                 
Operating profit (EBIT) -2.7 0.1 -2.8 3.7 -0.9 5.8 0.4 1.1 2.2 1.0 1.6 2.3 0.6 0.6 3.0 0.0
                                 
Adjusted EBITDA -1.9 0.9 -1.9 8.7 3.6 20.7 4.0 3.7 6.6 3.6 5.6 5.0 2.5 3.7 6.0 1.8
Adjustments to EBITDA - - - - 0.0 1.9 - - - - - - - -   0.3
                                 
Adjusted EBIT -2.7 0.1 -2.8 3.7 -0.9 7.7 0.4 1.1 2.2 1.0 1.6 2.3 0.6 0.6 3.0 0.3
Adjustments to EBIT - - - - 0.0 1.9 - - - - - - - -   0.3

Other

EUR million Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
                                 
EBITDA -2.2 -2.7 -2.0 -3.3 -2.3 -2.6 -4.6 -3.7 -2.6 -3.6 -3.2 -4.0 -3.2 -4.6 -4.7 -4.6
                                 
Depreciation & Amortization -0.0 0.0 0.0 0.1 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
                                 
Operating profit (EBIT) -2.2 -2.7 -2.0 -3.4 -2.4 -2.6 -4.7 -3.8 -2.7 -3.7 -3.4 -4.1 -3.3 -4.7 -4.8 -4.7
                                 
Adjusted EBITDA -2.2 -2.7 -2.0 -3.3 -2.3 -2.6 -2.1 -3.7 -2.6 -3.6 -3.2 -4.7 -3.2 -4.6 -4.7 -4.6
Adjustments to EBITDA - - - - 0.0 0.0 2.5 0.1 - - - -0.7 - - - -
                                 
Adjusted EBIT -2.2 -2.7 -2.0 -3.4 -2.4 -2.6 -2.2 -3.8 -2.7 -3.7 -3.4 -4.8 -3.3 -4.7 -4.8 -4.7
Adjustments to EBIT - - - - 0.0 0.0 2.5 0.1 - - - -0.7 - - - -

Rovio's financial highlights

  1.1.–31.12.
Key financial metrics 2019 2018 2017 2016 2015
  (IFRS) (IFRS) (IFRS) (IFRS) (IFRS)
MEUR (unless otherwise stated)          
           
Revenue 289.1 281.2 297.2 191.7 142.1
Games 264.8 250.4 248.0 159.0 113.5
Brand Licensing 24.3 30.8 49.2 32.7 28.6
           
EBITDA[1] 32.3 47.8 60.0 35.4 -6.5
Games 35.6 40.5 43.2 39.8 11.1
Brand Licensing 13.8 20.8 30.1 5.8 -5.9
Other -17.0 -13.4 -13.2 -10.2 -11.7
EBITDA margin. % 11.2% 17.0% 20.2% 18.5% -4.5%
           
Adjusted EBITDA[2] 32.6 47.5 64.5 35.4 -3.2
Games 35.6 40.8 43.2 39.8 12.8
Brand Licensing 14.0 20.8 31.9 5.8 -4.7
Other -17.0 -14.1 -10.7 -10.2 -11.3
Adjusted EBITDA margin. % 11.3% 16.9% 21.7% 18.5% -2.3%
           
Operating profit[3] 18.1 31.5 31.4 16.9 -21.6
Games 31.3 38.3 38.4 28.9 3.6
Brand Licensing 4.3 7.0 6.4 -1.7 -13.6
Other -17.6 -13.8 -13.5 -10.3 -11.6
Operating profit margin. % 6.3% 11.2% 10.6% 8.8% -15.2%
           
Adjusted operating profit[4] 18.3 31.2 35.9 16.9 -18.3
Games 31.3 38.6 38.5 28.9 5.3
Brand Licensing 4.6 7.0 8.3 -1.7 -12.3
Other -17.6 -14.5 -11.0 -10.3 -11.2
Adjusted operating profit margin. % 6.3% 11.1% 12.1% 8.8% -12.9%
           
Profit (loss) for the period 13.2 24.6 20.6 10.6 -18.1
Earnings per share. EUR 0.17 0.31 0.27 0.14 -0.24
           
Equity ratio. %[5] 80.5% 83.7% 77.9% 64.1% 59.1%
Capital expenditure[6] 3.1 1.3 8.5 23.3 43.9

 


 

[1] EBITDA (earnings before interest, taxes, depreciation and amortization) is defined as operating profit before depreciations and amortizations.

[2] Adjusted EBITDA is defined as EBITDA excluding items affecting comparability. Items affecting comparability are defined as material items outside ordinary course of business such as material net gains and losses from business disposals, direct transaction costs related to business acquisitions, restructuring costs for business operations, and costs relating to enlargement of the ownership base of the company.

[3] Operating profit is defined as profit (loss) for the period before income taxes, share of profit of associates, and finance income and expenses.

[4] Adjusted operating profit is defined as operating profit excluding items affecting comparability.

[5] Equity ratio is calculated by dividing shareholder’s equity by balance sheet total less advance payments received.

[6] Capital expenditure, which is net cash flow from investments in Property, plant and equipment and Intangible assets.