Rovio, the mobile game development studio best known for creating the Angry Birds franchise, is closing down its London studio. The news was delivered alongside Rovio’s fourth quarter and full-year 2017 financial report on Friday.
Rovio for the fourth quarter reported revenues of €73.9 million ($90.7 million) and earnings per share of 10 cents. Analysts, meanwhile, were expecting €77.33 million and 11 cents per share. For the full year, Rovio brought in €297.2 million ($365.8 million) versus the €298 million analysts anticipated.
CEO Kati Levoranta said that although Rovio’s business has a healthy foundation, they are not satisfied with the current performance. In the fourth quarter, the firm’s three new games – Angry Birds Match, Angry Birds Evolution and Battle Bay – landed short of their expectations. Levoranta also pointed to increased competition which led to a significant increase in user acquisition costs.
The London studio on the chopping block was opened in January 2017 with a focus on creating massively multiplayer online games. Rovio only ever got around to staffing the studio with seven employees although it had plans to add as many as 20 additional employees. The work done at the London office will be implemented at Rovio’s other studios, we’re told.
Rovio’s stock took a hit on the news. It’s currently trading at €4.54, down close to 10 percent on the day.