On Thursday, the company witnessed a horrific drop in its shares after it stated that the 2018 revenue may differ from the market expectations and its adjusted profit is expected to only 9-11% of its sales. It expects its sales in 2018 to be around 260-300 million euros compared to 297 million in the prior year. The outlook disappointed investors, which in turn led to a 40% drop in its shares, the worst selloff since IPO.
The company witnessed a horrific drop in its shares after it stated that the 2018 revenue may differ from the market expectations and its adjusted profit is expected to only 9-11% of its sales.
Under the leadership of Kati Levoranta, Rovio had managed to diversify its business. But slowly, the company started struggling to generate revenue from its diversified business, though Angry Birds continued to boost profits. Investors, who were eager to own a share of the company, feel misled as the company failed to move beyond Angry Birds.
Investors are dumping the stocks as Rovio miserably failed to replicate a similar success like that of Angry Birds and have painted a bleak future for the company. The biggest challenge for the company is to lure new players to its board, because a large chunk of its users have moved on to some other alternates.
The competition in the gaming industry is getting tough. Rovio needs to give investors some assurance that it can make the company grow and multiply its business in this industry. Rovio needs to put on the thinking cap and offer their players something new that would persuade them to stick with it.