Rovio makes a Mighty Eagle's $68 million in profit in financial squawk

Rovio has announced that in 2011, it made a huge $106.3 million turnover and a whopping $67.6 million in profit (before tax), showing that flinging feathery fowl is a very serious business. Fueled by the success of Angry Birds, Seasons and Rio, the company grew by a factor of eight in the last year, from 28 employees all the way to 224. The company adds that the three games were downloaded 648 million times and are now used by 200 million daily users, while sales of merchandise contributed to around 30 percent of the total revenue. The report adds that the only barrier to future profits is if people stop buying new smartphones, but we're not sure that's likely to be the case for a while.

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Rovio Entertainment reports 2011 financial results

Solid performance across all business areas

Helsinki, Finland – Rovio Entertainment Ltd, the world's leading provider of mobile entertainment and creator of the Angry Birds franchise, today had the pleasure of announcing the financial results for the full calendar year of 2011.

Total revenue amounted to €75.4 million ($106,3 million) driven by strong growth in game download activity and consumer product sales. Earnings before tax were €48,0 million ($67.6 million) or 64% of total revenue in 2011.

"The strong growth in revenue clearly demonstrates the popularity of the Angry Birds brand." Mikael Hed, Rovio CEO said. "The heavy investments made in 2011 to all business areas will be seen in future products. To ensure continuous success we need to be creative and stay focused on entertaining our millions of fans by continuously developing new and innovative products and services."

The Angry Birds franchise fuels Rovio's performance
The financial outcome of 2011 is very positive for Rovio. Rovio's different business areas, Games, Advertising, and Consumer Products, are fully rolled out and generated both revenue and profit.

The Consumer Products business area, which includes both Merchandising and Licensing income, generated revenues that represent a about 30% of total revenue in 2011. The company was working together with more than 200 licensing partners on developing new products and services within the Angry Birds franchise.

Rovio's game offerings in 2011 consisted of three games, all based on the Angry Birds characters: Angry Birds, Angry Birds Seasons, and Angry Birds Rio. The games are available as both free and paid versions on all popular mobile and connected devices. The total number of game downloads reached 648 million by the end of year 2011 and the total number of active monthly users, across all platforms, reached 200 million.

The number of employees grew from 28 to 224 during the year 2011.
Market and business development expectations

Future sales will to a large extent depend on the launch schedules and success of new games and initiatives in 2012. As sales of new devices remain the main driver for mobile game downloads, Rovio expects business to continue to grow accordingly.

"We are very optimistic about 2012 due to significant investments in product development, cutting-edge branding, brand protection and corporate infrastructure," Mikael Hed said.

- Currency exchange rates EUR/USD is based on 2011 median of 1,41.
- Rovio Entertainment Oy´s financial figures have been prepared in accordance with Finnish Accounting Standards (FAS).