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Angry Birds creator’s profits dropped 73% in 2014 thanks to merch

Angry Birds Stella color art See full gallery on TechnoBuffalo

If you were to look at Rovio’s strictly mobile gaming business, you’d think it was still very successful. While not moving at the pace that it was a few years ago, the Angry Birds brand (alongside other things in the Rovio stable) saw a 16 percent profit increase over the course of 2014.


Sounds good, right? Not so much.


The other sides of Rovio’s current business model that include plush dolls, snacks, toys and general licensed goods? Not so hot. The sales for that side of the business are so bad, in fact, that they caused Rovio’s entire operating profit to drop by 73 percent.


They’re still in profit, of course. Keep that in mind.


Rovio Chief Executive Pekka Rantala talked to Reuters about the loss of profit thanks to the licensing business. He mentioned that the Angry Birds movie and TV show will push the licensing business back into profits.



“The movie will help us get the licensing business back to growth. We are already seeing signs of pick-up in licensing business, and pretty soon we will be able to publish new major partnership deals…”



We’ll see if that comes to fruition.


I know this: the buzz about Angry Birds isn’t what it used to be. Not by any stretch of the imagination.






Source: Reuters

















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