HELSINKI: Rovio Entertainment, the maker of the “Angry Birds” mobile games and movie, posted better than expected quarterly profit on Thursday, representing a fillip to investor confidence dented by a dramatic profit warning in February.
The Finnish company’s recent troubles have stemmed from tough competition and increased user-acquisition costs, as well as high dependency on the Angry Birds brand that was first launched as a mobile game in 2009.
However, adjusted operating profit in the first quarter of 2018 roughly doubled year on year to €10 million, with Rovio citing growth in its top games and lower marketing costs.
Sales, meanwhile, were down 1 percent at €66 million on declining revenue from its 2016 Hollywood movie.
Shares in Rovio, which listed last September, rose 5.6 percent on the news, recovering a some of the 50 percent decline after the February profit warning.
“Quarterly projections are difficult for the gaming companies as costs may fluctuate significantly between quarters,” said OP Bank analyst Hannu Rauhala, who has a “buy” rating on the stock.
“But the report nevertheless shows some stability in their performance, which strengthens confidence.”
Rovio reiterated the full-year outlook that had disappointed investors in February, when it said that sales could fall this year after jumping 55 percent in 2017.
In the past months Rovio has announced the departures of its head of games and its investor relations chief while cutting the pay of its chairman and vice chairman.
Rovio expects a movie sequel to boost business next year and the company has also stepped up investments in its spin-off company Hatch, which is building a Netflix-style streaming service for mobile games.
Angry Birds maker Rovio gains ground as profits rise
Angry Birds maker Rovio gains ground as profits rise
Qatar’s foreign reserves rise to $71.9bn in January
RIYADH: Qatar’s foreign reserves saw a slight increase in January, reaching $71.95 billion, according to recent data from the Qatar Central Bank.
The figures, released at the end of last month, show a steady rise in the country’s international reserves and foreign currency liquidity.
One notable highlight from the report is a significant 12.8 percent month-on-month rise in Qatar’s gold investments, which now stand at $18.13 billion — marking the highest level ever recorded.
This growth in reserves underscores Qatar’s increasingly robust financial position, which is expected to be mirrored in the December data of other Gulf Cooperation Council countries.
The GCC nations, whose currencies are pegged to the US dollar, typically align their monetary policies with that of the Federal Reserve. Accumulating foreign reserves is crucial for maintaining the stability of these currency pegs, managing liquidity, and safeguarding exchange rates, especially during periods of global financial uncertainty.
However, the report also revealed a decline in investments in foreign treasury bonds and bills, which fell by 9 percent month on month to approximately $30.1 billion — the lowest level in five years. In contrast, the total balances held with foreign banks saw an 18.7 percent increase, reaching $5.92 billion, the highest figure in 10 months.
QCB’s international reserves and foreign currency liquidity also showed a year-on-year increase of 2.65 percent in December, reaching $71.7 billion, as reported by the Qatar News Agency.
This trend of rising foreign reserves is not unique to Qatar. In November, Saudi Arabia’s foreign reserve assets saw a notable 5 percent increase, reaching $463.6 billion, suggesting a regional trend of accumulating financial buffers.
In addition, Qatar’s economic resilience continues to be recognized globally. In March, Fitch Ratings reaffirmed the country’s “AA” credit rating, citing its expanding liquefied natural gas production capacity and high per capita income. The rating reflects Qatar’s strong fiscal position, with one of the highest GDPs per capita globally and a flexible public finance framework that bolsters its economic stability.
An “AA” rating signals very low credit risk and a strong ability to meet financial obligations, even amid potential economic challenges. This rating aligns with a broader regional shift, as Middle Eastern countries diversify their economies to reduce dependence on oil revenues.
