Angry Birds Company Rovio a mobile game developer closes its studio based in London after the warning that its profits may fall.
The bad news for the company is the head of games, Wilhelm Taht, also left the company on Friday leaving Chief Executive Officer (CEO) Kati Levoranta behind in charge. The Finnish mobile games maker Rovio has been extremely notorious for its most popular mobile game Angry Birds, the game had collectively 3 billion downloads in six years before the arrival of its new sequel Angry Birds 2 according to Forbes.
The company behind the game Angry Birds with worth more than $2.25 billion, is facing some serious financial issues now. The company has been warned of declining brand licensing revenues which could face up to 40% decline in this year. Blamed tougher competition and rising marketing costs for the poor outlook.
The studio at London was just opened in 2017 after that the company went public with a valuation of 786 million pounds. However, the company issued warning over profits which caused the company shares to fall by 50%.
Rovio announced the closure of its London studio in order to concentrate on its Studios based in Finland and Sweden, the company had seven-game developers employed at the London office though.
Rovio was very successful for several years after 2009 when it launched its popular game Angry Birds, the company started falling into a loss in 2015 when it was downsized to one-third of its total workforce.
However, the Angry Birds Movie played a significant role in supporting the company financially and earned $350 million for the company in cinemas, Angry Birds sequel is also expected in 2019.
It’s with a heavy heart that I tell you the @rovio London Studio is going to close. Sad times for us, but I look back with genuine pride at my time with these talented and kind people. Been quite a ride. pic.twitter.com/EYxO3ZZmaA
— Mark Sorrell (@Sorrell) March 2, 2018