Rovio Entertainment Reports 2013 Financial Results

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Rovio Entertainment Reports 2013 Financial Results ROVIO ENTERTAINMENT REPORTS 2013 FINANCIAL RESULTS Espoo, Finland -- April 28th 2014 -- Rovio Entertainment Ltd, the creator of the globally loved Angry Birds brand, announced today its financial results for the full 2013 calendar year. Rovio´s total consolidated full-year revenue amounted to €156 million (2010: €6.5 million, 2011: €75.6 million, 2012: €152.2 million). Earnings before interest and taxes (EBIT) were €36.5 million (2010: €3.1 million, 2011: €46.9 million, 2012: €76.8 million), and net profit after tax was €26.9 million (2010: €3 million, 2011: €35.4 million, 2012: €55,5 million). “After three years of very strong growth, 2013 was 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”, said Rovio CFO Herkko Soininen. “Building on top of our games business, where we moved into free-to-play, Rovio set its foot strongly into the entertainment business. In 2013 we formed a world-class movie animation production team in Los Angeles that is already working on the first Angry Birds feature film, to be globally premiered in July 2016. In addition we built the biggest animation studio in the Nordics for the production of animated TV content, bringing to market 42 Angry Birds Toons episodes in its first year. In launching ToonsTV, we introduced new means of content delivery, with 2 billion views already. On the licensing side, we continued to push digital and physical integration”, said Mikael Hed, CEO of Rovio. 2013 was a year of milestones. First, Rovio rocked the video distribution industry by launching the innovative ToonsTV, its very own distribution channel. Rovio Stars, a third-party games publishing program was launched, publishing three exciting games throughout the year. There was also the opening of numerous Angry Birds attractions including six Activity Parks, located across Spain, Finland and China. Rovio Books produced over 100 fun titles in over 30 languages across more than 40 countries. Plus, Rovio Learning proudly presented Angry Birds Playground – an inspiring physical learning space combined with our breakthrough teaching philosophy. Strengthening foundations and opening new markets 2013 was a year of solid results, underpinned by increased investments to drive the transition to the free-to-play economy as well as to strengthen the company’s entertainment foundations. Towards the end of the year Rovio launched Angry Birds Star Wars II, which was acclaimed by fans worldwide. Soon after it launched Angry Birds Go!, Rovio’s first free-to-play and non-slingshot Angry Birds game. Both launches rolled out a wide selection of top-selling consumer products, including Hasbro TELEPODS™ and animations, while the games themselves went on to top the charts in over 150 countries. Driven by these launches, and updates to existing games, the company's gaming revenues and gaming-related advertising revenue remained strong. The main revenue sources were paid games, free-to-play virtual goods, and advertising. Rovio’s Consumer Products business continued to perform strongly, accounting for 47% of total revenue in 2013, and there was expansion of the Consumer Products line into the important Russian and Latin American markets. Rovio also started a compliance program aimed at having a positive impact on production processes and improving transparency. To match the investments made during 2013, the number of Rovio employees grew from around 500 to 800. Market and business development expectations “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”, said Herkko Soininen CFO of Rovio. “Angry Birds has exceeded 2 billion downloads so far, making it the most downloaded game brand ever. We’re creating long lasting business, and strongly believe our entertainment strategy will consolidate Rovio’s position as one of the world’s most beloved brands”, added Mikael Hed, Rovio’s CEO. Note: Rovio Entertainment Ltd’s financial statements are prepared in accordance with Finnish Accounting Standards (FAS). For more information: Press inquiries: [email protected], tel +358 400 214 526 About Rovio Entertainment Ltd. Rovio Entertainment Ltd is a global industry-changing entertainment media company headquartered in Finland, and the creator of the globally successful Angry Birds™ characters franchise. Angry Birds, a casual puzzle game, became an international phenomenon within a few months of its release. Angry Birds has expanded rapidly into multifaceted entertainment, publishing, and licensing to become a beloved international brand. Rovio's animated Angry Birds feature film is slated for July, 2016.www.rovio.com.
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