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Rovio: One game launched and two studios added in Q2 - Nordea

Rovio's Q2 performance beat consensus on all fronts as Games' sales grew on the back of Angry Birds titles with user acquisition costs low at 21% of Games unit's sales.

The new game, Small Town Murders, keeps growing, and we expect the title to reach revenue of over EUR 5m in Q3. Rovio opened two new studios in Q2, and we foresee its M&A agenda remaining active in the future. As we believe that the upcoming changes to Apple's IDFA will accelerate industry consolidation and eventually benefit players with scale and diverse game portfolios, we view Rovio's opening and acquiring of new studios as steps in the right direction.

We raise our DCF and multiples-based fair valuation range to EUR 6.7-9.3 (5.3-7.3) per share.
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