HELSINKI: Angry Birds game maker Rovio Entertainment warned on profits on Thursday, wiping more than 40 percent off the Finnish company’s shares and leaving investors nursing big losses following a flotation last September.
Rovio blamed increased marketing costs and other investments for the gloomier outlook. Its shares were 45 percent lower at €5.5 in early trade, less than half the IPO price of €11.50.
“That guidance is nowhere near the growth they previously talked about,” said a fund manager with Rovio stock who declined to be named.
It was the latest setback for investors after the stock dropped by about 20 percent after Rovio’s first interim report as a listed company in November.
The company on Thursday forecast an operating margin at 9-11 percent in 2018 versus 10.6 percent in 2017 and said it expected sales of €260-300 million versus €297 million last year.
However, these figures were below analysts’ forecasts of a margin of 14.5 percent and sales of €336 million, according to Thomson Reuters data.
Following the IPO in September, Rovio CEO Kati Levoranta said “the mobile gaming market is expected to grow fast and we are well positioned to take an advantage of this growth.”
Rovio’s largest investor with 40.8 percent of the shares is Trema International, a company owned by Kaj Hed, the uncle of Rovio’s co-founder Niklas Hed.
Rovio saw rapid growth after the 2009 launch of the original “Angry Birds” game, in which players used slingshots to attack pigs who stole birds’ eggs. But the company plunged to an operating loss and cut a third of its staff in 2015 due to tough competition.
Rovio had bounced back in 2016 with a help of its 3D Angry Birds movie, and followed up with the oversubscribed IPO that valued it at $1 billion.
Rovio said in Thursday’s statement it expects to use around 30 percent of its games revenue to add new users in 2018, adding that the cost per user had risen significantly in the market.
“The costs for new users are at a threshold, that’s too high for second-tier games... What Rovio is trying, increasing sales by spending on marketing, the equation just doesn’t work,” said Aaron Kaartinen, analyst at Finnish asset manager FIM.
“Their games don’t have enough natural traction among players.”
Rovio’s game titles include “Angry Birds 2,” “Angry Birds Blast,” “Angry Birds Friends” and “Battle Bay.”
Investors take flight after Angry Birds maker warns on profit
Investors take flight after Angry Birds maker warns on profit
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
