Rovio Entertainment Corp.

Interim Report January-March: improved profitability, cash flow and Angry Birds 2 performance

Rovio Entertainment Corporation          Stock Exchange Release           April 28, 2020 at 9 a.m. EEST

Improved profitability, cash flow and Angry Birds 2 performance

January-March 2020 highlights

• Rovio group revenue was EUR 66.6 million (70.9) and declined 6.0% year-on-year
• Group adjusted operating profit grew to EUR 13.0 million (7.5) and adjusted operating profit margin to 19.6% (10.5%) on the back of quite stable games revenues despite much lower level of user acquisition
• Games revenue declined by 5.3% year-on-year to EUR 62.7 million (66.3). In comparable currencies, games revenue declined approximately by 7%. The Games gross bookings were EUR 62.1 million (65.8) and declined 5.7% year-on-year. In comparable currencies, the gross bookings declined by approximately 8%.
• Angry Birds 2, gross bookings were EUR 25.0 million and increased slightly from Q4-19. The game has had stable revenues with continued low amount of user acquisition. Game performance improved during the quarter.
• Angry Birds Dream Blast, launched on 24th January 2019, gross bookings were EUR 16.1 million and the user acquisition investments were significantly decreased from last year’s level
• User acquisition investments were EUR 13.5 million (23.7), or 21.5% of the Games segment’s revenue (35.8%)
• Brand Licensing revenue was EUR 3.9 million (4.6) and declined 15.9% year-on-year
• Group adjusted operating profit excluding Hatch Entertainment was EUR 15.8 million (9.3) and adjusted operating profit margin 23.7% (13.1%)
• Operating cash flow was EUR 11.5 million (3.3)
• Earnings per share was EUR 0.11 (0.08)

Key figures

	1-3/	1-3/	Change,	1-12/
EUR million	2020	2019	%	2019
Revenue	66.6	70.9	-6.0%	289.1
EBITDA	15.9	10.5	51.4%	32.3
EBITDA margin	23.8%	14.8%	-	11.2%
Adjusted EBITDA	16.2	10.5	54.4%	32.6
Adjusted EBITDA margin, %	24.3%	14.8%	-	11.3%
Operating profit	12.7	7.5	70.6%	18.1
Operating profit margin, %	19.1%	10.5%	-	6.3%
Adjusted operating profit	13.0	7.5	74.8%	18.3
Adjusted operating profit margin, %	19.6%	10.5%	-	6.3%
Profit before tax	11.5	7.5	52.8%	17.7
Capital expenditure	0.8	0.7	18.7%	3.1
User acquisition	13.5	23.7	-43.3%	99.7
Return on equity (ROE), %	13.3%	19.5%	-	10.8%
Net gearing ratio, %	-69.5%	-67.4%	-	-65.7%
Equity ratio, %	80.8%	78.4%	-	80.5%
Earnings per share, EUR	0.11	0.08	50.4%	0.17
Earnings per share, diluted EUR	0.11	0.07	51.9%	0.17
Net cash flows from operating activities	11.5	3.3	253.8%	10.5
Employees (average for the period)	466	422	10.4%	450

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year. Calculations and definitions are presented in the Performance Measures section.