February 12, 2020 / 7:24 AM / 8 days ago

Angry Birds maker Rovio's profit plummets burdened by Hatch

HELSINKI, Feb 12 (Reuters) - Rovio Entertainment, the maker of the 10-year-old “Angry Birds” mobile game series, reported on Wednesday a 96% drop in its quarterly profit year-on-year, burdened by its 5G gaming platform Hatch and increased user acquisition costs.

The Finnish company, which listed its shares in 2018 and cut its 2019 outlook on higher investment costs in September, said its fourth-quarter adjusted operating profit declined to 0.2 million euros ($0.22 million) from 5.3 million a year earlier, while sales dropped 1.4% to 71.6 million euros.

Rovio said Hatch, its 80%-owned subsidiary developing a cloud-based game streaming service, is seeking annual cost savings of 6 million euros and focusing on a subscription and streaming service for children and families. ($1 = 0.9170 euros) (Reporting by Anne Kauranen, editing by Louise Heavens)

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