{"id":6008,"date":"2017-11-23T16:09:00","date_gmt":"2017-11-23T16:09:00","guid":{"rendered":"http:\/\/www.gamasutra.com\/view\/news\/310334"},"modified":"2017-11-23T16:09:00","modified_gmt":"2017-11-23T16:09:00","slug":"rovio-shares-fall-by-20-percent-thanks-to-rising-ua-costs","status":"publish","type":"post","link":"https:\/\/sickgaming.net\/blog\/2017\/11\/23\/rovio-shares-fall-by-20-percent-thanks-to-rising-ua-costs\/","title":{"rendered":"Rovio shares fall by 20 percent thanks to rising UA costs"},"content":{"rendered":"

Rovio has seen its share price\u00a0drop by 20 percent\u00a0two months after its IPO, with declining profits and rising user acquisition (UA) costs the likely\u00a0culprits.\u00a0<\/p>\n

Shares began trading for around $13.6 when the Finnish outfit first went public, but are now going for around\u00a0for $11 per share.<\/p>\n

The company’s financials<\/a>\u00a0for the three months ended September 30 show that revenues actually increased 41.2 percent year-over-year to $83.8 million.\u00a0<\/p>\n

However, user acquisition costs rose by 308.7 percent to $26.3 million, while profits fell by 70 percent to $1.9 million.\u00a0<\/p>\n

Meanwhile, revenue\u00a0in Rovio’s games division rose by 40 percent, with the company explaining it\u00a0received\u00a0a monetization boost from its “top games.”<\/p>\n

The company\u00a0believes its games line-up will start to reap the benefits of its recent\u00a0UA investments in around 8 to 10 months.\u00a0<\/p>\n

“We significantly increased our investments in user acquisition, and at the same time in future revenues, for our top-performing games: investments increased to\u00a0$26\u00a0million in the third quarter, which, as expected, reduced the profitability of the games business unit for the third quarter,” explained Rovio CEO Kati\u00a0Levoranta.<\/p>\n

“We expect the payback time for these investments to be 8 to 10 months. In August, Rovio launched a new game, Angry Birds Match<\/em>, which has promising performance indicators and the potential to become one of Rovio\u2019s best performing games.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Rovio has seen its share price\u00a0drop by 20 percent\u00a0two months after its IPO, with declining profits and rising user acquisition (UA) costs the likely\u00a0culprits.\u00a0 Shares began trading for around $13.6 when the Finnish outfit first went public, but are now going for around\u00a0for $11 per share. The company’s financials\u00a0for the three months ended September 30 […]<\/p>\n","protected":false},"author":2,"featured_media":6009,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-6008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts\/6008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/comments?post=6008"}],"version-history":[{"count":0,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts\/6008\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/media\/6009"}],"wp:attachment":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/media?parent=6008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/categories?post=6008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/tags?post=6008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}