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Revenue growth slows for Angry Birds studio

Rovio CFO says 2013 was a "foundation building" year

Angry Birds developer and publisher Rovio Entertainment's financial results for 2013 have indicated the company's growth has plateaued.

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The Finnish studio reported revenues of €156m (£128m) for 2013, an increase of just 2.5 per cent year-on-year. By comparison, its revenue in 2012 reached €152.2, more than doubling the €75.6m Angry Birds generated in 2011.

Profits, meanwhile, have halved from to €55 million in 2012 to about €27 million a year later.

In a post on the company's website Rovio CFO Herkko Soinine said "after three years of very strong growth, 2013 was a foundation-building year".

In addition to releasing various games in 2013, Rovio launched distribution channel ToonsTV, a third-party game publishing initiative called Rovio Stars, and launched a number of Angry Birds related attractions in amusement parks worldwide.

"We invested in new business areas, such as animation and video distribution, ventured into new business models in games, and consolidated our strong market position in consumer products licensing. With these investments we have been gearing up for the future growing markets."

Mikael Hed, chief executive of Rovio, added that the company's non-gaming ventures has given it a strong footing in the broader variety of entertainment industries.

"Building on top of our games business, where we moved into free-to-play, Rovio set its foot strongly into the entertainment business," he said. "In 2013 we formed a world-class movie animation production team in Los Angeles that is already working on the first Angry Birds feature film, to be globally premiered in July 2016.

"In addition we built the biggest animation studio in the Nordics for the production of animated TV content, bringing to market 42 Angry Birds Toons episodes in its first year. In launching ToonsTV, we introduced new means of content delivery, with 2 billion views already. On the licensing side, we continued to push digital and physical integration.

Looking forward, Soininen said the company's business in the future depends on whether investments and initiatives launched in 2013 bear fruit.

"We're creating long lasting business, and strongly believe our entertainment strategy will consolidate Rovio's position as one of the world's most beloved brands," said Hed.

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