{"id":9429,"date":"2017-09-29T14:02:27","date_gmt":"2017-09-29T14:02:27","guid":{"rendered":"https:\/\/rsoftsolution.com\/blog\/after-a-6-pop-angry-birds-maker-rovio-drops-below-its-e11-50-ipo-price.html"},"modified":"2017-09-29T14:02:27","modified_gmt":"2017-09-29T14:02:27","slug":"after-a-6-pop-angry-birds-maker-rovio-drops-below-its-e11-50-ipo-price","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/after-a-6-pop-angry-birds-maker-rovio-drops-below-its-e11-50-ipo-price.html","title":{"rendered":"After a 6% pop, Angry Birds maker Rovio drops below its \u20ac11.50 IPO price"},"content":{"rendered":"


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Rovio<\/a>, maker of the Angry Birds gaming franchise, saw a small pop of 6 percent in its first day of trading as a public company, but like the very birds that get catapulted in Rovio\u2019s original blockbuster game, the rise was not to last.<\/p>\n

After\u00a0pricing its IPO at \u20ac11.50 per share<\/a> \u2014 the top of its range \u2014 to raise \u20ac30 million, today the stock opened on the Nasdaq Nordic exchange at \u20ac12.20, up six percent. But then, after morning trading took it as high as \u20ac12.34 a share, Rovio (trading as ROVIO<\/a>) fell down to the same price it was yesterday evening, \u20ac11.50\/share. And it\u2019s actually dipped below that, going as low as \u20ac11.48 at one point a few minutes ago. Its current market cap is $1 billion (\u20ac896 million).<\/p>\n

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Rovio had said yesterday that its initial offering price of \u20ac11.50 was oversubscribed. It appears that the U.S. waking up has done little to boost trading so far. Rovio\u2019s 37,073,010 IPO shares were\u00a0offered to private individuals and entities in Finland, Sweden and Denmark and in private placements to institutional investors in Finland and internationally.<\/p>\n

Rovio counts the U.S. market as one of its very biggest \u2014 the company said that \u201cmost\u201d of its revenue comes from North America and Europe \u2014 and it also has a high profile there.\u00a0But unlike Spotify, another company based out of the north of Europe that counts the U.S. as a key area for current business and future growth, Rovio chose to list closer to home.<\/p>\n

Rovio once had designs to become the next Disney<\/a>. But the fortunes of gaming companies rise and fall with the popularity of their titles, and that has impacted that lofty goal. (Indeed, you could argue that this has been a sticking point for some other gaming companies that have gone public in recent years, such as King \u2014 which eventually sold to Activision Blizzard<\/a> \u2014 and Zynga. Their economics do not necessarily follow those expected of public companies.)<\/p>\n

Rovio has had a number of strong follow ups to the original Angry Birds \u2014 it had three mobile in Apple\u2019s top 100 highest grossing apps over the summer, for Angry Birds Blast, Angry Birds Evolution and Angry Birds 2 \u2014 but no new brand so far has quite broken through as a blockbuster in quite the way as the original Angry Birds did.<\/p>\n

According to Verto Analytics, the Angry Birds franchise (comprising all the titles) has seen its monthly\u00a0US visitors over the age of 18 tripled over the last year. There are now 5.9 million visitors compared 2 million in July 2016. But while<\/span>\u00a0Angry Birds (2.1 million visitors)\u00a0and Angry Birds 2 (1.4 million visitors)\u00a0have grown respectively by 351 percent and 128 percent, Angry Birds is down from a peak of 3 million earlier this year.<\/span><\/p>\n

\u201cEven the most successful Angry Birds titles still lag well behind flagship offerings from their biggest rivals: King\u2019s Candy Crush Saga has 10.2 million monthly uniques\u00a0and Supercell\u2019s Clash of Clans has 5.6 million,\u201d noted\u00a0Connie Hwong, of Verto, who also questions the model of building a number of games around a single brand.<\/p>\n

\u201cKing and Supercell have exercised greater restraint in rolling out expansions or sequels to their existing mobile games franchises,\u201d Hwong wrote. \u201cCandy Crush has a handful of sequels while Clash of Clans has just one spinoff, Clash Royale. Is a smaller, more carefully edited catalogue of game titles a better bet for mobile game companies?\u201d<\/p>\n

Rovio has been right-sizing in a different way: after investing in a number of areas in its \u201cDisney\u201d heyday, the company has since pulled back on many of its most ambitious ventures outside of games (such as amusement parks) in favor of a licensing model, where a third party takes on the investment and risk of new projects.<\/p>\n

Other moves in the future for the company will include more geographic expansion. With China currently the world\u2019s biggest market for gaming, Rovio is focusing its strategy there.<\/p>\n

\u201cWe are working on a number of high profile potential partnerships in China,\u201d Rovio\u2019s EVP of games, Wilhelm Taht, said in an interview with TechCrunch last month. In China, foreign companies need to align with a local company in order to build a business in the country. \u201cWe have gone through several potential partnerships and with 600 million downloads in the region already, we will try to strengthen the China business.\u201d<\/span><\/p>\n

The company reported revenues of \u20ac266 million ($314 million) for the year that ended June 30, 2017, with an operating profit of \u20ac29,483 ($35 million).<\/p>\n

We are updating this story with more detail and price changes throughout the day.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunch\/social\/~3\/BERyJu9eqvc\/<\/p>","protected":false},"excerpt":{"rendered":"

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