The CEO of Angry Birds game maker Rovio Entertainment has said she would leave the company by mutual consent at the end of the year.
Kati Levoranta has headed up Rovio Entertainment since 2016 and took the company public in 2017. While the stock market listing was a first success, Rovio issued a surprise profit warning only five months after, angering investors and halving its share price in 1 day.
The share price has never recovered, currently trading at approximately 6 euros, nearly 50% lower than the listing price of 11.50 euros.
“We came to this conclusion by mutual consent with the board,” Levoranta said of her planned departure in a phone interview with Reuters.
Levoranta stated Rovio maintained its target of an operating margin of 30% long term as set when it listed, although the margin continues to be between 6.3% and 11.2% in the past few decades.
“It’s possible to reach a 30% EBIT with an excellent game catch,” she said.
Rovio has lately reidentified itself as “a mobile first” games company instead of “a games first entertainment company”, Levoranta said.
“So this is a good natural moment to think of the change (of CEO),” she said, adding that the company was currently in excellent shape with great cash flow and a solid balance sheet.
Even though the IPO had “gone phut”, overall Levoranta has performed an superb job, OP analyst Kimmo Stenvall said.
“So clearly this is a loss for the company in my opinion,” he explained.
Rovio stocks were up 0.4% in day trade, lagging a 1.2% rise in Helsinki’s benchmark share index.
“The company’s results and cash flow development are at a good level and its balance sheet is strong,” Rovio Chairman Kim Ignatius said in a statement, thanking Levoranta for her job.
Rovio said its board of directors would start the search process for a new Chief Executive Officer.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Anne Kauranen in Helsinki and Milla Nissi in Gdansk. Editing by David Goodman, Alexander Smith and Susan Fenton.
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