Rovio pins its Hopes on 3D Movie Project to Re-grow
On Thursday, Finnish developer and publisher Rovio Entertainment Limited said that a new 3D movie project could help the video game developer to return to growth. Earlier, a more than 70% profit drop had given signs that the company’s Angry Birds brand is losing its appeal.
Rovio, video games and entertainment company headquartered in Espoo, has yet to repeat the success of its famous game which became the top paid mobile application of all the time after the game’s launch about six years ago.
According to Rovio, the company’s total sales fell about 9% in 2014 to 158.3 million euros. The company also said that the revenue from mobile games grew more than 15% to about Euro100.5 million in the same period. Rovio’s new games such as Jolly Jam and Angry Birds Stella Pop! have helped total annual downloads reach 600 million.
According to the company, its operating profit has fallen to about 10 million euros. Previously, it was 36.5 million euros. While talking to Reuters, Chief Executive Pekka Rantala said that a company like Rovio can't be satisfied with falling revenue.
As per reports, Rovio has expanded the Angry Birds brand into a spin-off TV series, while the company is backing an animated movie which is set to premiere in May 2016. According to Rantala, the total production cost of the movie will be about $80 million, while marketing costs could total more than the production budget.
He further said, “The movie will help us get the licensing business back to growth. We are already seeing signs of pick-up in licensing business, and pretty soon we will be able to publish new major partnership deals”.
Some analysts think that Rovio has been slow to respond to a shift in freely available mobile games.