Brand licensing revenue has dipped to €6.5 million at Rovio as the studio sees overall revenue hit €71.8 million, a decrease of nearly 17 per cent on last year’s figures.
Rovio’s half year financials, running from January 2018 to June 2018 have dipped in accordance to expectations following the major boost its brand licensing and overall revenues received from The Angry Birds Movie.
Despite this, the studio’s games segment has continued to grow, up 6.4 per cent to €65.3 million compared to €61.3 million for the same period last year. Rovio’s biggest game, Angry Birds 2 gross bookings grew 44 per cent year on year to reach a record €29.7 million.
Kati Levoranta, CO of Rovio, said: “The revenue of Rovio’s brand licensing unit was, as expected, lower year on year mainly due to the fact that a large chunk of The Angry Birds Movie income was recognised in the second quarter last year.
“This quarter, the brand licensing unit launched the licensing programme for The Angry Birds Movie 2 in Las Vegas and has signed licensing contracts with many top consumer brands such as Chupa Chups, Crocs and Pez.
“Mainly due to smaller movie income, Rovio group revenue was 9.9 per cent smaller in the first half of 2018 than in the corresponding period of 2017. Growing user acquisition investments and smaller movie revenue resulted in a smaller but still healthy operating profit of €0.6 million.”
Rovio is maintaining its full year outlook as reported in the 2017 financial statement. Rovio Group revenue is expected to be €260 – 300 million in 2018.
However, brand licensing segment revenues are expected to decline by 40 per cent in 2018. The decline is due to the lessening profile of the Angry Birds Movie. The consumer products revenues are expected to be at a similar level as in 2017.
The focus of brand licensing in 2018 is on preparing the licensing portfolio for 2019 and The Angry Birds Movie sequel.