/Revenue up at Rovio, though high user acquisition costs impact operating profit

Revenue up at Rovio, though high user acquisition costs impact operating profit

The end of Rovio’s Q3 sees the company with year-over-year gains in revenue for both its game division and the group as a whole, though operating profit came in below estimates.

That decline in adjusted operating profit, down to €5.4 million (~$6 million) from last year’s €10.4 million (~$11.6 million), is due to the fact that Rovio spent more on user acquisition during the quarter than first anticipated. As a whole, user acquisition costs ate up 40.8 percent of game revenue, up from 28.2 percent the year prior.

Most of that cost was due to Angry Birds Dream Blast, a Q4 2018 release, but UA costs for Angry Birds 2 also rose due in part to an attempt to cash in on the Angry Birds 2 movie that released during the quarter.

Looking just at Rovio’s video game dealings, revenue for the quarter came in at €66.4 million (~$73.8 million), up 5.2 percent from last year’s €63.1 million ($70.1 million). All of the studio’s older games declined in terms of gross bookings year-over-year. The relatively new release Angry Birds Dream Blast is the only title mentioned that saw growth in Q3, with the company reporting €17.8 million (~$19.8 million) in gross bookings from Dream Blast alone.

The group as a whole, including Rovio’s game, licensing, and other business dealings, reported €​74.8 million (~$83.2 million) in revenue for the quarter, up 5 percent year-over-year.