Henrik Kettunen/Bloomberg NewsRovio Entertainment’s Angry Birds game being played on an iPad.Brightly colored birds are not just good for blowing up evil pigs. They are also proving profitable.
Rovio Entertainment, the creator of the Angry Birds franchise, racked up revenue of $106.3 million last year and posted earnings before tax of $67.6 million.
“The strong growth in revenue clearly demonstrates the popularity of the Angry Birds brand,” Mikael Hed, Rovio’s chief executive, said in a statement. “The heavy investments made in 2011 to all business areas will be seen in future products.”
Like many mobile start-ups, Rovio is capitalizing on the growth in smartphones and tablet computers. By the end of 2011, the company said total downloads had reached 648 million, with active monthly users hitting 200 million.
Silicon Valley has taken a keen interest in the fast-growing mobile game maker. Last year, the company raised $42 million from a group of private equity firms, including Accel Partners, Atomico Ventures and Felicis Venture.
The popularity has prompted speculation that Rovio will soon go public, following the lead of another online game maker, Zynga. But skeptics have raised concerns about Rovio’s ability to sustain growth, given its dependence on a single blockbuster game.
In its earnings announcement, the company said its financial future would “depend on the launch schedules and success of new games and initiatives in 2012.” Rovio is also trying extend its brand off line, with a line of plush toys and other licensing ventures. The consumer products group now accounts for about 30 percent of revenue.
“We are very optimistic about 2012 due to significant investments in product development, cutting-edge branding, brand protection and corporate infrastructure,” Mr Hed said in the statement.