Angry Birds maker Rovio hopes a new animated movie will ease profit woes and restore growth. The Finnish mobile game developer saw a 73% drop in profit, a sign that the brand is losing its appeal with consumers.
Licensing of the Angry Birds brand on toys, sweets and clothing has caused problems for Rovio. The company has failed to repeat the success of the Angry Birds game in 2009, which became the number one paid app of all time.
Total sales dropped to 158.3 million euros, down 9%, last year. Revenue from Rovio’s mobile games, on the other hand, is up 16% to 110.7 million euros thanks to new offerings. Operating profit dropped from 36.5 million to 10 million euros.
Rovio hopes that its new animated movie will help restore growth and generate interest in the Angry Birds brand. The new movie is expected to premiere in May 2016, and production costs are estimated to be $80 million. Marketing costs are expected to be higher than production costs.
For the time being, Rovio is developing new characters for new games, animations and consumer products. The company has been slow to shift to the dominant free-to-play market where revenue is generated through advertisements and in-game purchases.