Q3 marked another quarter of strong profitability thanks to Rovio's stable game portfolio and significantly lower user acquisition costs. The company's new outlook points to somewhat lower sales and significantly improved adjusted EBIT y/y, but Rovio postponed its guidance on game launches. The company will not launch more new games in 2020, while previous guidance called for one to two game releases. The postponement of game launches triggers negative estimate revisions for 2021-22. We find Rovio's current valuation undemanding and argue that the share price is missing an option for growth through M&A (see our report from 26 October) or an organic game launch.
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