Rovio Resists IPO While Building Ad Biz

TEMPO.CO, Jakarta - Eye-popping revenue growth and profitability were not enough to save King Digital from bombing in its market opening, with the company stock closing below its opening price of $20.50. It echoed the experience of Zynga, another much-hyped game developer that flopped in its trading debut last year and hasn't recovered since, as cited in Media Post Blogs.

By contrast, Rovio Entertainment looks smart to have eschewed the public market so far. One might assume the "Angry Birds" creator would have already tried to cash in by now, capitalizing on the global success of its hit franchise and otherwise frothy market for IPOs and tech stocks. Even King Digital has seen something of a bounce-back, now trading closer to its opening price of $20.50.

But so far, the Finnish company has kept its power dry as it builds up its ad business and continues to expand its product line that spans mobile games, animation, a range of merchandise from plush toys to candy, and soon, movies. It boasts some 500 licensing partners. Lately, Rovio has been highlighting the growth of its animation venture, ToonsTV.

Since launching in March 2013, the series featuring the Angry Birds characters recently surpassed 2 billion views across the Angry Birds apps as well as platforms such as Samsung Smart TV and Roku devices. It now averages about 225 million views a month, with 4 to 6 videos watched per session on average.

MEDIA POST | MW