Angry Birds Maker Rovio's CEO Leaving by Mutual Consent

Rovio CEO Kati Levoranta and Nasdaq Helsinki President Henrik Husman shake hands ahead of RovioÕs bourse debut in Espoo, Finland September 29, 2017. REUTERS/Jussi Rosendahl
Rovio CEO Kati Levoranta and Nasdaq Helsinki President Henrik Husman shake hands ahead of RovioÕs bourse debut in Espoo, Finland September 29, 2017. REUTERS/Jussi Rosendahl
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Angry Birds Maker Rovio's CEO Leaving by Mutual Consent

Rovio CEO Kati Levoranta and Nasdaq Helsinki President Henrik Husman shake hands ahead of RovioÕs bourse debut in Espoo, Finland September 29, 2017. REUTERS/Jussi Rosendahl
Rovio CEO Kati Levoranta and Nasdaq Helsinki President Henrik Husman shake hands ahead of RovioÕs bourse debut in Espoo, Finland September 29, 2017. REUTERS/Jussi Rosendahl

The chief executive of Angry Birds games maker Rovio Entertainment said on Monday she would leave the company by mutual consent at the end of the year.

Kati Levoranta has led Rovio since 2016 and took the company public in 2017. While the stock market listing was an initial success, Rovio issued a surprise profit warning just five months later, angering investors and halving its share price in one day.

The share price has never recovered, currently trading at around 6 euros, almost 50% lower than the listing price of 11.50 euros.

"We came to this conclusion by mutual consent with the board," Levoranta said of her planned departure in a telephone interview with Reuters.

Levoranta said Rovio maintained its target of an operating margin of 30% long term as set when it listed, even though the margin has been between 6.3% and 11.2% in the past three years.

"It's possible to reach a 30% EBIT with an excellent game catch," she said.

Rovio has recently reidentified itself as "a mobile first" games company instead of "a games first entertainment company", Levoranta said.

"So this is a good natural moment to think of the change (of CEO)," she said, adding that the company was now in excellent shape with good cash flow and a strong balance sheet.

While the IPO had "gone phut", overall Levoranta has done an excellent job, OP analyst Kimmo Stenvall said.

"So clearly this is a loss for the company in my opinion," he said.

Rovio shares were up 0.4% in afternoon trade, lagging a 1.2% rise in Helsinki's benchmark share index.

"The company's results and cash flow development are at a good level and its balance sheet is strong," Rovio Chairman Kim Ignatius said in a statement, thanking Levoranta for her work.

Rovio said its board of directors would begin the search process for a new CEO.



Ubisoft Unveils ‘Creative Houses’ Model as First-Quarter Bookings Miss Expectations

The logo of Ubisoft is seen in Montreuil, near Paris, France, July 13, 2020. (Reuters)
The logo of Ubisoft is seen in Montreuil, near Paris, France, July 13, 2020. (Reuters)
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Ubisoft Unveils ‘Creative Houses’ Model as First-Quarter Bookings Miss Expectations

The logo of Ubisoft is seen in Montreuil, near Paris, France, July 13, 2020. (Reuters)
The logo of Ubisoft is seen in Montreuil, near Paris, France, July 13, 2020. (Reuters)

France's lead videogame maker Ubisoft announced on Tuesday a sweeping reorganization of its internal structure, shifting to autonomous "Creative Houses" tailored to specific gaming genres, as it reported first-quarter net bookings that fell short of expectations.

The company said in a call that the leadership of each Creative House would be selected based on specific gaming genres, and could include those from creative or technical backgrounds, as part of the new approach.

"These units will reflect our diverse types of gaming experiences and will allow for enhanced quality, focus, autonomy and accountability," CEO and co-founder Yves Guillemot said in a statement.

The first such unit, jointly owned with China's Tencent, will manage flagship franchises including Assassin's Creed, Far Cry, and Rainbow Six. Co-CEOs Christophe Derennes and Charlie Guillemot will lead brand development across multiple platforms.

Ubisoft plans to roll out the full organizational changes by the end of the year.

The company reported first-quarter net bookings of 281.6 million euros ($305.7 million), missing its target of around 310 million euros and marking a 2.9% decline from the same period of last year.

It attributed the shortfall to a weaker-than-expected performance from the Rainbow Six Siege game and the delay of a partnership now expected in the second quarter.

Despite the miss, Ubisoft reiterated its full-year guidance and forecast second-quarter net bookings of approximately 450 million euros.

Upcoming releases include Anno 117: Pax Romana, a Prince of Persia remake, and mobile titles Rainbow Six Mobile and The Division Resurgence.