Angry Birds developer sees profit halved during what it calls a "foundation-building" year

Rovio Entertainment reports flat full-year revenue and a profit of only half of what it made last year; Minecraft, Candy Crush, and Clash of Clans companies are growing faster.

Rovio Entertainment, maker of the popular Angry Birds franchise, today reported financial results for the full 2013 calendar year and it wasn't all that great for the Finnish company. Full-year net revenue was €156 million ($216 million), up slightly from €152.2 million ($211 million) last year. Net profit, however, was a different story. Rovio's full-year net income was €26.9 million ($37.3 million), about half of the €55.5 million ($76.9 million) in income that the company reported for the same year-long period last year.

Rovio's first three years were marked by strong growth, but CFO Herkko Soininen described 2013 as a "foundation-building" year. "We invested in new business areas, such as animation and video distribution, ventured into new business models in games, and consolidated our strong market position in consumer products licensing. With these investments we have been gearing up for the future growing markets," he said in a statement.

In 2013, Rovio moved into the free-to-play market (Angry Birds Go!), released Angry Birds Star Wars II, and formed a movie animation team in Los Angeles, Calif. that is currently working on an Angry Birds movie to be released in July 2016. Also in 2013, Rovio built what it calls the "biggest animation studio" in the Nordics for the production of its Angry Birds Toons TV series.

Other 2013 achievements for Rovio included the opening of Angry Birds attractions at theme parks in Spain, Finland, and China. Rovio Books also released over 100 titles in over 30 languages and across more than 40 countries, the company said. Finally, the number of Rovio employees grew in the past year from around 500 to about 800.

"Future business will, for the most part, depend on how well last year's investments perform and how our new properties delight our audiences. We are actively investing in the company to increase our capabilities for the future, and this year will see exciting new content and services coming from all our business areas," Soininen added.

Compared to other Nordic developers, Rovio's revenue performance is lagging behind companies like Mojang (Minecraft), Supercell (Clash of Clans), and King (Candy Crush). The Wall Street Journal has compiled a neat graphic that speaks to Rovio's sluggish performance relative to its peers.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch
Got a news tip or want to contact us directly? Email news@gamespot.com

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Discussion

22 comments
ECH71
ECH71

Good. They advertise in the games I've paid for -- such a d*** move.

xcollector
xcollector

Didn't they make most of their money off of the merchandise? Angry birds was never a game of the year title. Theres no where left for this game to grow because there never really was anything there to begin with. People had enough of buying plush and bean bags. But they can't say that to investors. So they call it a "foundation-building" year.

C-THREE
C-THREE

Angry Birds had its time. The game made major bank and really was the first game to seriously start the mobile gaming revolution. You got to know when to hold 'em and know when to fold 'em.

ggregd
ggregd

I don't think "the Nordics" is a thing.  It's called Scandinavia.

It's spin to call this report bad.  They took in more money but they invested more in new business, so their profit is down.  Zynga lost a ton of money, that's bad.

Mr_Big_Boss
Mr_Big_Boss

$216 million and they're complaining

Gruug
Gruug

Pet Peeve time. Why is this in my "PC NEWS"? I could care less about "Angry Candy" games that are not made (and hopefully won't be) for PC's.

brxricano
brxricano

More like Angry Investors, amiright?!

spacecadet25
spacecadet25

I should make a game called "Angry Candy Farming Saga."  Three of these fly-by-night companies will sue me and stay afloat, problem solved, (except I have almost no money to give them, but whatever).

Thanatos2k
Thanatos2k

The fad is over.  Time to go the way of Zynga, and the eventual fate of all mobile developers.

fester420
fester420

Angry Birds just happen to come along at the right time and had regular updates for free which was awesome at the time.  Now all of their games are microtransaction riddled garbage with barely any updates.


People will tire of candy crush and clash of clans too, the milk will dry up.

mattcake
mattcake

Why can they never realise their piece of crap game was a lucky fluke made popular by social media? The game was rubbish, you won't ever have another hit like it, get over it, go spend your "hard earned" money by retiring and enjoying life and stop peddling more of this crud on us when you have no reason to.

enoslives7
enoslives7

Sorry Rovio, the sheeple got tired of the Angry Nerds fad and wandered off.

You see, the thing about casual games is they have no loyalty. Good luck.....

de-astroturfer
de-astroturfer

And next year King will see its profits halved and Rovio will be making redundancies and Zynga will shutting up shop and so the cycle continues  

ACMC85
ACMC85

@brxricano That really made me laugh out loud. Thank you sir and I think you should reward yourself today with some little thing.

ACMC85
ACMC85

@Thanatos2k The fad won't be over. You do know that they made tons of money and can stick around for a really, really long time. So 20 years from now your children will see this and relive what you had to.

Hurvl
Hurvl

@de-astroturfer When Zynga closes, there will be more space for the other wretched companies and we may even see a new company try to outdo the others at money making and foul schemes.

de-astroturfer
de-astroturfer

@Hurvl @de-astroturfer  Or maybe the next big thing in casual gaming might be run by someone not quite so greedy, perhaps they won't implement £69.99 micro transactions we can but hope

de-astroturfer
de-astroturfer

@Hurvl @de-astroturfer Although sadly most of the big players are very greedy, not everybody in the world is greedy and anybody could create the next big hit. You really shouldn't be so pessimistic its not healthy and whats the point in complaining if theres no hope in ever changing anything ? there's always hope !

Hurvl
Hurvl

@de-astroturfer @HurvlGo ahead and hope all you want, don't let reality smack you in the face on your way out of Hopeland :P.