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Rovio saw a 5.6% decline in revenue in the third quarter of 2023

The company is "focused on finding out synergies that our life with Sega may entail to bring out the best in Rovio."
Rovio saw a 5.6% decline in revenue in the third quarter of 2023
  • Sega currently owns 97.7% of Rovio following its acquisition earlier this year
  • Despite declining revenue, Rovio remains one of the world’s top mobile game makers

Rovio has released its financial report for the third quarter of 2023, highlighting the company’s performance over the period.

Rovio’s Q3 began with a bang, with gaming giant Sega closing its acquisition of 97.7% of the company. The company is currently in the process of acquiring the outstanding shares.

It's worth noting that during this period however the company saw a 5.6% year-on-year decline in revenue, with €73.1 million ($77 million) compared to €77.4 million ($81.6 million) in the same period of 2022.

The company also saw a 17.9% decrease in EBITDA, which fell from €12.2 million ($12.9 million) to €10 million ($10.5 million) between Q3 2022 and Q3 2023.

Additionally, there was a 4.7% year-on-year decline in gross bookings, which fell from €70.8 million ($74.6 million) in Q3 2022 to €67.5 million ($71.1 million).

A bright future

Despite these declines, the company saw increases in several key metrics. Adjusted EBITDA increased 1% from €15.7 million ($16.5 million) in Q3 2022 to €15.8 million ($16.6 million) in Q3 2023. Adjusted operating profit also increased 3.8% from €12.1 million ($12.8 million) in Q3 2022 to €12.5 million ($13.2 million) in Q3 2023.

“In the third quarter of 2023, Rovio moved on to a new phase, as SEGA gained control of 97.7% of Rovio’s issued and outstanding shares,” said Rovio CEO Alex Pelletier-Normand. “While the market dynamics continued to be weaker than last year, we remained disciplined in our own operations and focused on finding out synergies that our life with Sega may entail to bring out the best in Rovio.

“The global mobile gaming market declined in the third quarter by 0.7% compared to the same period in the previous year but remained stable sequentially. At Rovio, our comparable gross bookings increased by 0.7% and 3.8%, respectively. As in the previous quarters, the growth was primarily driven by Angry Birds Dream Blast.”

Looking forward, Rovio expects comparable revenue for the year to be lower than in 2022. Additionally, the company expects to spend between 25 and 30% of games revenue for Q4 on user acquisition.

We listed Rovio as one of the top 50 mobile game makers of 2023.