Angry Birds stops making profit
The operating profit of the Finnish company Rovio, the developer of mobile games, declined by 73% in 2014. The main reason is the drop in demand for related products of the company: toys, clothes, drinks. Recently, the main product of Rovio Angry Birds is rapidly losing popularity, reports Business Insider.
The mobile gaming industry is very changeable: 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 it fell to $ 10.7 million. Total sales for the year decreased by 9% to $ 169.6 million. Over the last year, Rovio reduced 14% of its employees.
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“Sales of related products do not meet the expectations of the company, and we, of course, are not satisfied with the results of licensing,” said Rovio CEO Pekka Rantala. He believes that the company should not have become hostage to one brand and fully rely on its success.
However, the revenue 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 mobile games of the company over the past 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 serials and a full-length cartoon, the premiere of which is expected in 2016. In this direction, Rovio focuses on entertainment brands such as Walt Disney.
For the past 5 years, the company was managed by Michael Head. Pekka Rantala was accepted in Rovio in June 2014 for the position of commercial director. In January, Rantala took over as CEO and Head led Rovio Animation Studios, which is involved in animation projects.
According to experts, personnel changes are an attempt to reverse the situation with the fall of the company's profits.
The mobile gaming industry is very changeable: 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 it fell to $ 10.7 million. Total sales for the year decreased by 9% to $ 169.6 million. Over the last 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 results of licensing,” said Rovio CEO Pekka Rantala. He believes that the company should not have become hostage to one brand and fully rely on its success.
However, the revenue 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 mobile games of the company over the past 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 serials and a full-length cartoon, the premiere of which is expected in 2016. In this direction, Rovio focuses on entertainment brands such as Walt Disney.
For the past 5 years, the company was managed by Michael Head. Pekka Rantala was accepted in Rovio in June 2014 for the position of commercial director. In January, Rantala took over as CEO and Head led Rovio Animation Studios, which is involved in animation projects.
According to experts, personnel changes are an attempt to reverse the situation with the fall of the company's profits.
Source: https://habr.com/ru/post/286832/
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