The issuance of a profit warning compels the Rovio’s head to leave the platform

0
The issuance of a profit warning compels the Rovio's head to leave the platform
The issuance of a profit warning compels the Rovio's head to leave the platform

The issuance of a profit warning compels the Rovio’s head to leave the platform. Rovio the Finnish company that makes games and one of the most famous of Rovio’s games is “Angry Birds“. The company has declared on Friday that its head of games was leaving their company.



The company says that the  head decided to leave the Finnish company only after a week when Finnish company issued a profit warning that sent its shares plunging 50 %.

The head of the game maker company Wilhelm Taht made a statement that reads“It’s time to pass the hoodie and move on,”.

He did not made any statement that can clarify the reason behind Wilhelm Taht’s departure from the company.

 The Finnish company Rovio said that  Wilhelm Taht was leaving with an immediate effect for personal reasons and Chief Executive Kati Levoranta is set to assume his position for the time being.

Rovio is a developer, publisher and distributor of video games alongside being an entertainment company. The company founded in 2003 is headquartered in Espoo, Finland.

Must Read: Pakistan Biggest Auto Show 2018 concludes with a huge turnout of 300,000 visitors

Back in September the last year Rovio shares debuted at 11.50 euros apiece. And now these shares fell a further 10 per cent to a new low of 4.30 euros according to the given new financial details of the company.

The down fall of the shares of the Finnish company as Brough to the analysts, they said that these falling shares of Rovio  were worse than expected, even after the profit warning made to Wilhelm Taht.

Just a week ago, the company forecast a 2018 operating margin of 9-11 per cent versus 10.6 per cent in the previous year and said that it had expected sales of 260-300 million euros ($320 to $370 million) versus 297 million of the year 2017.

According to the full financial report that was made on Friday,  brand licensing  revenues of the company were expected to decline by 40 per cent. This expected decline of revenues was expected due to the company’s waning income from its 3D Hollywood movie that was released back in 2016.

“That implicitly puts the games unit in a worse position than market thought … It gives a range of 7 percent decline to 9 percent growth (for the games unit),” stated SEB Equities analyst “Mathias Lundberg”. Mathias Lundberg has a strong “hold” rating on the stock.

Investors of the Finnish Games brand Rovio expect its management to explain reasons behind the profit warning in a news conference that is set to start 1200 GMT.

LEAVE A REPLY

Please enter your comment!
Please enter your name here