Rovio: Ruby Games improves growth and margin profile - Nordea

Despite in line revenues, Rovio's Q2 report missed on adjusted EBIT due to high user acquisition spending relating to the disappointing launch of Darkfire Heroes. As major news, the company announced the acquisition of Turkish Ruby Games, a proven developer of popular hyper-casual games such as Hunter Assassin. While the report prompts only modest estimate revisions, we raise our estimates mainly thanks to the Ruby Games acquisition which should improve growth and margins. We increase our fair value range to EUR 6.9-9.0 (6.8-8.8) mainly due to estimate revisions, partially offset by our estimated EUR 90m price tag for the acquisition including all earn-outs. Marketing material commissioned by Rovio.

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