Rovio: Promising initiatives to drive growth - Nordea

We expect Rovio's Q4 report to offer sequential growth in Games revenue, supported by both a solid organic contribution and the acquisition of Ruby Games. Looking further ahead, we find view Rovio's outlook favourable given the combination of highly cash-generative existing Angry Birds games and compelling growth initiatives offered by the soft launch pipeline (AB Journey, Hunter Assassin 2, Moomin: Puzzle and Design). Additionally, high capacity to drive M&A (EUR ~160m in cash and 9% of own shares) provides further upside for estimates and value-creation potential. The share remains attractively valued at a 40-60% discount to western mobile gaming peers. We maintain our fair value range of EUR 6.9-8.8. Marketing material commissioned by Rovio.

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