Shares in Rovio slumped almost 19 per cent after the Finnish gaming company reported third quarter losses in its maiden results as a public company.
The maker of the popular smartphone game Angry Birds joined the stock market in September at the top of its projected price range, but was valued at only €896m at the end of its first day of trading, a fraction of previous estimates.
In its first results as a listed group, the company said it had more than quadrupled the amount spent on attracting new users to its games from July to September to €22.2m, compared with €5.4m in the same quarter last year.
The higher costs pushed the group to a pre-tax loss of €0.5m in the third quarter, though profits for the first nine months of the year were still 63 per cent higher than the same period a year ago at €16.7m following the success of The Angry Birds Movie, which boosted the company earlier in the year.
“Rovio continues to improve the monetization of its top games by optimizing user acquisition investments in accordance with a carefully managed process and also by continuously introducing new features to its games,” said chief executive Kati Levoranta.
“As part of its growth strategy, Rovio is also continuously developing new games, with only those games that pass strict internal assessments being approved for market launch.”
(Image: Sony Pictures via AP)
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