HELSINKI, Feb. 22 (Xinhua) -- The share price of Finland's game and film maker Rovio declined sharply on Thursday following its publication of early results in the fourth quarter (Q4) of 2017.
By early evening Helsinki time, Rovio had lost nearly half of its market value. Its CEO Kati Levoranta singled out the high cost of attracting new customers and difficulty in licensing the Angry Birds brand.
Its turnover in Q4, 2017 grew to 73.9 million euros from 63.2 million euros in Q4 in 2016, which fell short of analysts' expectations of between 77 and 80 million euros.
Analysts were also disappointed with the admission by Rovio that it does not expect larger growth in 2018. Rovio predicted its turnover in 2018 will be 260-300 million euros, while the figure was given as 297 million euros for 2017.
Business profit in 2018 was envisaged by Rovio between 9 and 11 million euros. The figure for last year was tentatively at 10.6 million euros.
Rovio went public at Nasdaq Helsinki in September last year. The value of its shares was initially 11.50 euros. By late afternoon Thursday, the price was between five and six.
Talking to investors in the afternoon, Levoranta said the long-term objectives of Rovio remain unchanged. The company still aims at the level of 30 percent profitability.
She said the main reason for the results were the high costs of attracting customers, adding that the whole game industry is grappling with that problem.
Rovio has faced problems in licencing its brand. The impact of the 2016 film Angry Birds has started dwindling, Levoranta said.