Angry Birds Maker Posts Loss Despite Jump in Sales

Angry Birds Maker Posts Loss Despite Jump in Sales

Finland’s Rovio Entertainment, creator of the popular smartphone game Angry Birds, on Thursday posted a loss for the third quarter despite rising sales, as it increased its investments with a view to boost its winnings in future.

Sales reached EUR 70.7 million (nearly $84 million) in the third quarter compared to 50 million the previous year, but year-on-year the company lost EUR 800,000.

Rovio posted a profit of EUR 3.9 million in the third quarter of 2016.

The company said this quarter’s negative result was expected as it invested EUR 22 million in top performing games, hoping this would boost its profits in future.

“In line with our growth strategy, we significantly increased our investments in user acquisition, which predictably led to a decline in profitability,” Rovio chief executive Kati Levoranta said in a statement.

“We expect the payback time for these investments to be 8 to 10 months,” Levoranta said, adding the launch of the new Angry Birds Match game could become one of the company’s “best performing”.

The group entered the Helsinki Stock Exchange at the end of September and was valued at 950 million euros.

On Thursday morning, the company’s share price was down by 19 percent.

Rovio has accelerated its diversification in recent years.

The release of the Angry Birds movie (2016), produced by Sony Entertainment, was a huge success that grossed $350 million worldwide, and is expected to help bolster Rovio profits in 2017 and 2018.

The company also runs Angry Birds theme parks in several countries, including Finland, China and Spain.

It oversees the publication of children’s books in a dozen languages, while boasting an average of 80 million active players per month and 11 million per day.

[“Source-gadgets.ndtv”]

Sony Reports Record Profits on Sales on Image Sensors

Sony Reports Record Profits on Sales on Image Sensors

HIGHLIGHTS

  • Success of Spider-Man: Homecoming has fuelled hopes of a rise in earnings
  • Profit increased 2.8 times to JPY 157.61 billion
  • The profit surge comes mainly from Sony’s image sensor business

Japan’s Sony on Tuesday reported its highest-ever first-quarter operating profit, taking the electronics giant one step toward its highest annual profit in two decades on the back of robust sales of image sensors.

In a vote of confidence for Sony’s turnaround under Chief Executive Officer Kazuo Hirai, the firm’s shares have risen by around 40 percent this year to nine-year highs.

The box-office success of its Spider-Man: Homecoming (Review) film has also fuelled hopes of a rise in earnings for Sony’s pictures business, which is working through a restructuring plan.

Profit increased 2.8 times to JPY 157.61 billion ($1.43 billion or roughly Rs. 9,164 crores) in April-June, exceeding the previous first-quarter record of JPY 121.3 billion set in 2007.

The result compared with a Thomson Reuters Starmine SmartEstimate of JPY 129.14 billion drawn from 10 analyst views.

The profit surge comes mainly as Sony’s image sensor business returned to stability having recovered from earthquake damage sustained a year ago, the company said.

Sony’s semiconductor division, which includes image sensors, posted an operating profit of 55.4 billion yen, reversing the year-earlier loss of JPY 43.5 billion, as operations at a key plant fully resumed to meet brisk demand for image sensors for smartphones.

The consumer electronics business was also profitable as it focused on high-end television sets and smartphones without seeking to increase in scale.

Together, strong performance across Sony’s divisions is pushing profit to golden-era levels. Nevertheless, analysts said the firm is yet to find long-term drivers of growth.

With the future in mind, Sony is using its newly recovered financial strength to venture into acquisitions. On Monday, it said it had bought most of the distributor of the English-language versions of Dragon Ball Z and One Piece animations.

The firm maintained its profit forecast of JPY 500 billion for the year ending March.

While that is below the market’s average forecast of JPY 562.19 billion, it would still be the highest since the company made JPY 526 billion in the year ended March 1998, when it enjoyed strong sales of its first PlayStation games console and other electronics. It also benefited from box-office hit Men in Black.

[“Source-gadgets.ndtv”]

India Tablet Sales Declined 16 Percent in March Quarter: CMR

India Tablet Sales Declined 16 Percent in March Quarter: CMR

HIGHLIGHTS

  • Sales of tablet PCs fell by 16 percent year-on-year, says CMR report
  • tablet shipments in the March quarter were also down by 6 percent
  • Datawind continued to hold the top spot with 34 percent market share

Sales of tablet PCs fell by 16 percent year-on-year to around 7.6 lakh units during January-March, hurt by lack of any promotional activity by device makers, says a report.

The tablet shipments in the March quarter were also down by 6 percent compared to the previous October-December quarter, the report by research firm CMR said.

Datawind continued to hold the top spot with 34 percent market share, followed iBall with 16 percent share, the report said. Samsung had 15 percent share while homegrown Micromax had 8 percent share.

“The continuous decline in the tablet space could be attributed to the lack of promotional activities in the space.

Aadhaar has, of course, provided a lot of impetus to the market (as it increases orders from government sector),” CMR Lead-Analyst (Tablets) Menka Kumari said.

However, at the same time, B2C consumption entirely depends on the promotional activities and some exciting features, she added.

CMR said upcoming GST regime is also going to affect the tablet market, but the magnitude can be gauged only later as a lot of clarity is expected to come on the implementation front.

4G tablets segment will constitute 50 percent of the market by the end of this year, the report added.

According to CMR’s “India Quarterly Tablet PC Market Review-1Q 2017” report, Android-based tablets have already captured the majority of the market while Windows-based tablets have seen continuous decline in India.

“The smartphone market has moved towards 4G and the tablets segment would also follow the same trend. The demand for SIM-enabled devices will continue to grow while Wi-Fi enabled devices will continue to see demand from the student community,” said Menka Kumari, Lead Analyst, Tablets, CMR, in a statement.

4G and 3G-based tablets witnessed sequential increase of 15 percent and 31 percent in terms of units shipped.

Alternatively, 2G and Wi-Fi based tablets saw a sharp decline of 62 percent and 33 percent, respectively, as compared to the previous quarter, the findings showed.

The tablet market within the price category of Rs. 10,000-Rs. 20,000 and less than Rs. 5,000 witnessed 48 percent and four percent sequential growth, respectively, during the quarter.

On the other hand, the price category of Rs. 20,000-30,000 saw a sharp 61 percent sequential decline, the report added.

Written with inputs from PTI and IANS

[“Source-ndtv”]

Mobile Marketing Will Generate $400 Billion in Sales by 2015

If you sell directly to U.S. customers or provide marketing services to clients who do, pay attention. A recent report says a growing mobile market is already generating billions in U.S. sales. And businesses are also spending billions to market to customers via mobile channels.

The Mobile Marketing Association, a global trade association for the mobile marketing industry, says those numbers are only going to increase.

Consider that last year mobile marketing generated an estimated $139 billion in U.S. sales. This figure takes into account both business to business and business to consumer sales.

The association claims the “MMA Mobile Marketing Economic Impact Study” released last month, is the first comprehensive study of U.S. economic performance across the mobile marketing industry.

Huge Growth Projected

Most impressive is that this amount is expected to grow by more than half during the next two years. The report says sales generated through mobile marketing will top $400 billion by 2015, an amazing 52 percent rise.

But it’s not just sales that are increasing. The MMA study suggests the amount U.S. companies are willing to spend on mobile marketing is increasing too.

For example, in 2012 the study estimates retailers and marketers spent $6.7 billion to reach customers via mobile channels. That’s considerably less than the amount generated by mobile sales, but still represents a huge opportunity for businesses providing mobile marketing services.

The study projected that amount would also increase, reaching $19.8 billion by 2015.

Mobile advertising, mobile direct response or enhanced traditional media and mobile customer relationship management were all considered in that expenditure.

What it Means to You

While the MMA study was aimed at demonstrating the economic stimulus and job creation potential of mobile marketing, there is a clear message here for small businesses and entrepreneurs as well.

USA Today reported recently on how small businesses are already putting mobile marketing to work to generate additional sales.

We’ve reported previously on the importance of mobile technology to small business operations.

But the MMA study demonstrates the importance of mobile technology for growing your business too.

For many small businesses, this could include focusing on making sure you have a mobile friendly presence. It could also include focusing more attention on social media marketing, much of which is accessed via mobile devices by your customers.

You could also focus on developing mobile apps for your business. And, of course, if you provide marketing services to other business clients, it also means you should consider including mobile marketing services among your other offerings.

How is your business using mobile marketing to reach customers?

Mobile Photo via Shutterstock

[“source-smallbiztrends”]