Angry Birds maker’s stock plunges more than 40 percent

Angry Birds game maker Rovio Entertainment warned on prof🥃its on Thursday, wiping more than 40 percent off the Finnish company’s shares and leaving investors nursing big losses following an IPO last September.

Rovio blamed increased marketing costs and other investments for the gloomier outlook. Its shares traded 45 percent lower at 5.5 🌸euros by 1130 GMT, less than half the initial pub🀅lic offering price of 11.50 euros.

“That guidance is nowhere near the growth they previously talked about,” said a fund manager with Rovio stock who declined🎉 to be named.

It was the latest setback for investors after the stock dropped꧟ by about💟 20 percent after Rovio’s first interim report as a listed company in November.

The company on Thursday forecast an operating margin at 9-11 🉐percent in 2018 versus 10.6 percent in 2017 and said it expected sales of 260-300 million euros versus 297 million last year.

However, these figures were below analysts’ forecasts of a margin of 14.5 percent 𒊎and sales of 336 million euros, according to Thomson Reuters data.

Following the IPO in Septembe🍌r, Rovio CEO Kati Levoranta said “the mobile gaming market is expected 🍃to grow fast and we are well positioned to take an advantage of this growth.”

Rovio’s largest investor with 40.8 percent of the shares is Trema International, a company owned by Kaj Hed, the unꦫcle of Rovio’s co-founder Niklas Hed.

Rovio🔴 saw rapid growth after the 2009 la🃏unch of the original “Angry Birds” game, in which players used slingshots to attack pigs who stole birds’ eggs. But the company plunged to an operating loss and cut a third of its staff in 2015 due to tough competition.

Rovio had bounced back in 2016 with a help of its 3-D “Angry Birds” movie, and followed up with the oversubscribed IPO that valued it at $1 billion.

Rovio said in Thursday’s statement it expects to use around 30 percent of its games’ revenue to add new users in 2018, adding that the cost per user had risen significantly in the market.

“The costs for new users are at a threshold, that’s too high for second-tier games… What Rovio is trying, increasing sales by spending on marketing, the equation just doesn’t work,” said Aaron Kaartinen, analyst at Finnish asset manager FIM.

“Their games don’t have enough natural tract𝐆ion among players.”

Rovio’s game titles⛄ include “Angry Birds 2,” “Angry Birds Blast,” “Angry Birds Friends” and “Battle Bay.”