Shares in Angry Birds maker Rovio crash as it lowers outlook
Shares in the company behind hit video game Angry Birds dropped more than 20 per cent this morning after it lowered its revenue forecast for the full year.
Read more: Angry Birds maker Rovio predicts bumper 2019 despite halved profits
Rovio said it now expected to post revenue of between €295m (£264m) and €310m, down from previous forecasts of €300m to €330m.
The Finnish video game developer also warned its adjusted operating profit margin would be between five and eight per cent, compared to its previous outlook of nine to 11 per cent.
The shock announcement comes just a month after Rovio reiterated its outlook for the full year.
The company said its series of Angry Bird games were still performing well, and blamed the revised figures on increased investment.
“We see a window of opportunity in the market to scale up our top games and we are seizing this opportunity,” said chief executive Kati Levoranta.
“The increase in user acquisition investments naturally leads to a lower profitability for 2019 and 2020 as we work towards building growth and long-term cash flows.”
Rovio released two new games in the first three quarters of the year, and said it expected its largest revenue growth to come in the second half.
Read more: MPs call for regulation of video game loot boxes amid gambling concerns
The firm is also hoping for improved revenue from brand licensing following the release of the Angry Bird movie sequel.
Main image credit: Getty