Rovio Revenue Stabilises Following USD 200M Impairment and Internal Restructuring;

SEGA Sammy Bets on Licensing and Trans-Media for Future Growth

SEGA SAMMY HOLDINGS has released its Q1 financial results covering the threemonth period ending June 30, 2026. Angry Birds developer Rovio Entertainment delivered stabilised quarterly performance following a sweeping internal restructuring, contributing USD 46.9 million to group sales, a modest improvement from USD 45 million in the prioryear quarter and meeting internal performance expectations.

This quarter marks the first full financial checkup since SEGA Sammy disclosed in May 2026 that its highprofile acquisition of Rovio had failed to deliver anticipated economic value and recorded a USD 200 million impairment charge on the asset. Originally acquired for USD 775 million back in 2023, Rovio’s Beacon mobileoperation technology could not be seamlessly integrated into SEGA’s own mobile titles. Combined with rapid shifts in the global mobilegame landscape and rising useracquisition costs, the gaps forced the group to launch largescale operational rebuild at Rovio.

Restructuring Progress

As a core part of turnaround efforts, around 100 staff members were reassigned away from underperforming freetoplay projects to refocus on priority workflows. Rovio’s Finnish puzzle studio narrowed its game portfolio scope, while its Barcelonabased team took on expanded development responsibilities. Back in October 2025, Rovio already implemented a round of layoffs impacting 36 employees, triggered by weak returns from Angry Birds Dream Blast.

Across SEGA’s broader Consumer subsegment, total freetoplay sales (including Rovio’s mobile catalogue) rose to USD 81.8 million, up from USD 72.9 million yearonyear, yet still came in slightly below original forecasts. SEGA Sammy stated it will strengthen liveops for existing titles and recalibrate investment weighting for freetoplay within its overall business portfolio. Under updated capitalallocation rules, the group has put largescale M&A on hold to prioritise capital efficiency, shifting greater focus to premium fullgame titles for console and PC, while continuing collaboration between SEGA internal teams and Rovio.

Business Outlook

No brandnew Rovio game launches are scheduled for the current fiscal year, with new game projects still in preparation. Nearterm growth catalysts will mainly stem from IP licensing and transmedia initiatives. The most significant driver is The Angry Birds Movie 3, set for US theatrical release on December 23; international rollout dates are yet to be confirmed. SEGA will expand licensing and merchandising revenue around key IP anniversaries and integrate Angry Birds into SEGA’s wellestablished global transmedia framework, aiming to unlock value via film releases and brand partnerships rather than relying chiefly on new mobilegame output.

Industry analysts note that while Angry Birds remains a globallyrecognised IP, it has passed its peakgrowth phase, making rapid expansion purely from new mobile releases challenging. SEGA Sammy is repositioning Rovio: from an expected mobilegrowth engine toward a steady cashflow generator and transmedia IP asset.

Haruki Satomi, Group CEO of SEGA Sammy Holdings, commented that the group will keep advancing operational improvements for Rovio. Management intends to revitalise IP value through movies, licensing and merchandising, and deepen crossIP synergy with SEGA’s existing franchises to explore further commercial opportunities.