Rovio Entertainment Corporation Stock Exchange Release August 14, 2020 at 9.00 a.m. EEST
Record quarterly revenue for Games and high profitability
April-June 2020 highlights
-
Rovio group revenue was EUR 69.2 million (71.8) and declined 3.6% year-on-year due to lower movie revenues
-
Group adjusted operating profit grew to EUR 13.8 million (5.3) and adjusted operating profit margin to 20.0% (7.4%) due to stable revenues of key games, increased player engagement due to Covid-19 and lower level of user acquisition
-
Games revenue grew 2.2% year-on-year to EUR 66.9 million (65.4). In comparable currencies, games revenue grew by approximately by 1%. The Games gross bookings were EUR 67.7 million (65.2) and grew 3.9% year-on-year. In comparable currencies, the gross bookings grew by approximately 2%
-
Angry Birds 2 gross bookings were EUR 28.8 million and increased by 15% from Q120
-
Rovio launched a new narrative puzzle game Small Town Murders on 10th June
-
Rovio acquired Darkfire Games studio in Copenhagen, Denmark
-
Rovio established a new game studio to explore future of gaming in Montreal, Canada
-
User acquisition investments were EUR 14.0 million (21.3), or 20.9% of the Games segment’s revenue (32.6%)
-
Brand Licensing revenue was EUR 2.3 million (6.4) and declined 63.7% year-on-year due to lower movie revenues
-
Group adjusted operating profit excluding Hatch Entertainment was EUR 15.6 million (8.1) and adjusted operating profit margin 22.5% (11.3%)
-
Operating cash flow was EUR 18.7 million (4.8)
-
Earnings per share was EUR 0.15 (0.04)
January-June 2020 highlights
-
Rovio group revenue was EUR 135.8 million (142.6) and declined 4.8% year-on-year due to lower movie revenues
-
Group adjusted operating profit grew to EUR 26.9 million (12.8) and adjusted operating profit margin to 19.8% (9.0%)
-
Games revenue declined by 1.6% year-on-year to EUR 129.6 million (131.7). In comparable currencies, games revenue declined by approximately by 2%. The Games gross bookings were EUR 129.8 million (131.0) and declined 0.9% year-on-year. In comparable currencies, the gross bookings declined by approximately 2%.
-
User acquisition investments were EUR 27.5 million (45.1), or 21.2% of the Games segment’s revenue (34.2%)
-
Brand Licensing revenue was EUR 6.2 million (11.0) and declined 43.7% year-on-year
-
Group adjusted operating profit excluding Hatch Entertainment was EUR 31.4 million (17.4) and adjusted operating profit margin 23.1% (12.2%)
-
Operating cash flow was EUR 30.2 million (8.0)
-
Earnings per share was EUR 0.26 (0.11)
Key figures
| 4-6/ | 4-6/ | Change, | 1-6/ | 1-6/ | Change, | |
| EUR million | 2020 | 2019 | % | 2020 | 2019 | % |
| Revenue | 69.2 | 71.8 | -3.6 % | 135.8 | 142.6 | -4.8 % |
| EBITDA | 16.1 | 9.6 | 66.9 % | 31.9 | 20.1 | 58.8 % |
| EBITDA margin | 23.2 % | 13.4 % | - | 23.5 % | 14.1 % | - |
| Adjusted EBITDA | 15.9 | 9.6 | 64.6 % | 32.0 | 20.1 | 59.3 % |
| Adjusted EBITDA margin, % | 22.9 % | 13.4 % | - | 23.6 % | 14.1 % | - |
| Operating profit | 14.1 | 5.3 | 164.3 % | 26.8 | 12.8 | 109.6 % |
| Operating profit margin, % | 20.3 % | 7.4 % | - | 19.7 % | 9.0 % | - |
| Adjusted operating profit | 13.8 | 5.3 | 160.1 % | 26.9 | 12.8 | 110.3 % |
| Adjusted operating profit margin, % | 20.0 % | 7.4 % | - | 19.8 % | 9.0 % | - |
| Profit before tax | 14.8 | 4.8 | 206.2 % | 26.3 | 12.4 | 112.7 % |
| Capital expenditure | 1.1 | 1.0 | 10.6 % | 1.8 | 1.6 | 13.9 % |
| User acquisition | 14.0 | 21.3 | -34.4 % | 27.5 | 45.1 | -39.1 % |
| Return on equity (ROE), % | 19.7 % | 18.5 % | - | 19.7 % | 18.5 % | - |
| Net gearing ratio, % | -68.1 % | -66.8 % | - | -68.1 % | -66.8 % | - |
| Equity ratio, % | 83.1 % | 79.6 % | - | 83.1 % | 79.6 % | - |
| Earnings per share, EUR | 0.15 | 0.04 | 299.6 % | 0.26 | 0.11 | 131.7 % |
| Earnings per share, diluted EUR | 0.15 | 0.04 | 302.6 % | 0.26 | 0.11 | 133.8 % |
| Net cash flows from operating activities | 18.7 | 4.8 | 291.5 % | 30.2 | 8.0 | 276.2 % |
| Employees (average for the period) | 460 | 448 | 2.7 % | 463 | 435 | 6.4 % |
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year. Calculations and definitions are presented in the Performance Measures section.
The changes in comparable currencies have been calculated by translating the reporting period figures with the average USD/EUR exchange rates of the comparison period for the US dollar dominated in-app-purchases in United States and global ad network sales.