Rovio sees a drop in revenue as it generates $79.3 million in Q3 2020

Finnish game publisher Rovio has released figures showing that it posted revenue of €67.9 million ($79.3 million) in the third quarter of 2020, down 9.2 percent from last year.

Rovio said the decline in revenue was mainly due to a contraction in branded IP licensing business. However, the Rovio Group's adjusted profit grew to €12.8 million ($14.9 million) in the third quarter due to stable revenue performance from Rovio's games and lower customer acquisition costs.

Stable revenue

Although Rovio's gaming revenue was down 3.3 percent year-over-year in the third quarter, the gaming segment still totaled €64.2 million ($75 million).

In June, Rovio also launched a new puzzle game, Small Town Murders. The game's profitability also strengthened in the third quarter, with revenue totaling €3.0 million ($3.5 million) in a single quarter. Angry Birds 2 also posted year-over-year revenue growth.

Positive developments

Kati Levoranta, CEO of Rovio, said: "In the third quarter of 2020, our gaming revenue and player engagement returned to normal levels from the peak in the second quarter. Gaming revenue was down slightly from the second quarter, but still higher than the first quarter."

"Rovio's revenue capacity continues to be at a high level with a significant year-over-year increase due to lower customer acquisition costs and stable game revenues. The company's operating cash flow also remains at a high level due to stronger revenue capacity." Separate news sources have also indicated that Levoranta plans to leave the company at the end of this year.