Good afternoon, everyone, and welcome to Rovio's half year 2021 earnings audiocast. My name is Minna Eloranta. I am a senior IR manager at Rovio. I'll be your host for today. In today's audiocast, we'll go through Rovio's half year 2020 financial results and the acquisition announcement from today. With me here in the studio are Rovio's CEO, Alexandre Pelletier-Normand, and our CFO, René Lindell. After the presentation, we will host a Q&A session. In order to ask your question, please dial in to the conference call number shown on the screen. Your question will then be placed in the queue and asked in order of arrival. Without further ado, Alex, this was your first half as a CEO. How did it go? Thank you very much. Good afternoon, everyone. Thanks for joining us today. Welcome to this Q2 earnings call. Well, yes, we had an eventful quarter. Generally speaking, I have to say that the first six months as CEO has been quite exciting. We have a lot to cover today. Let's get started right away with the highlights for the Q2 and also the first six months of the year. The first thing that I want to point out is that we continue to see a reliable performance of our live games. Last year, comparable quarter was Q2 2020, which we all know was a bit unusual since it benefited from the beginning of the shelter at home situation. When taking that into account, I do believe that the Q2 2021 games revenue growing 6% year-over-year in comparable currency was a strong result. This is following a good performance as well in Q1. In total, the games revenue grew +8% in comparable currency since the beginning of the year. The main drivers for this quarterly growth were Small Town Murders. This game released in June of last year, and since then, it grew quarter-over-quarter every quarter, so it's been three quarters of growth. Angry Birds Friends as well, which continues on its trajectory that started at the beginning of last year. Profitability was lower during the quarter due to UA investment for Small Town Murders and also to support the launch of Darkfire Heroes On this chapter, it is worth noting that we haven't seen a significant change in overall UA performance following Apple's privacy policy update that started being enforced at the beginning of the quarter. Continuing on the highlights, we launched Darkfire Heroes globally on April the 15th. This is a game coming from our Copenhagen studio that joined us last year. We haven't been able to reach a sufficient level of scale yet, but we have to keep in mind it's a new genre for us, and we continue to learn, so we're working now both on the games, improving the games, and also trying different user acquisition strategies. At the end of the quarter, we also took the decision to cancel the Hardhead Squad from our strategy studio in Espoo. The game had been in soft launch for several months, and while the team really managed to improve their monetization KPIs, especially at the end of the soft launch period, it just wasn't enough to reach our ambition level. I just want to really thank and salute the team. Of course, in every creative endeavors like that, there's a lot of energy and passion that is invested in the game. Really the team pushed a lot, especially in the last couple of months of work where they really improved their KPIs. I want to salute their work. In June, we announced a long-term partnership with Moomins, which I will cover in a minute. Earlier in H1, our puzzle studio released 2 games in soft launch, so Angry Birds Journey in January and then Supernatural City in April, and they're both progressing as expected. Maybe a final piece of news that is not exactly happening in H1, but after the second quarter, we launched Angry Birds Reloaded on Apple Arcade, that's Apple's subscription service, the game was very well received by the community. It quickly reached the top download spot around the world, I think that also speaks for the strength of the brand. This morning, we had exciting news. We announced the acquisition of Ruby Games, that's a hyper-casual studio with an impressive track record. It is located in Izmir, Turkey. It has a team of 34 talented and specialized game developers. CEO is Mert Can Kurum, who was the sole owner of the company. I was actually in Izmir two weeks ago to visit the team, I have to say I was really impressed by how agile and fast they are. They've been consistently successful in a market that is very dynamic and competitive. They released 13 games so far, eight of which reached the top 10 downloads in the U.S., and three reached the number one spot. They also released Hunter Assassin, which was the number six most downloaded game of last year. They are profitable, and they run on high EBITDA margins. We believe, of course, that this acquisition will be beneficial for both company and that it fits not only in our strategy, but also in our analysis of the market. I just want to take some time here to go over the rationale behind the acquisition. There's four main points that I want to make. The first one is that, of course, this is a new growth vector for us. Hyper-casual is the fastest-growing mobile gaming category, and it is very dynamic. We're also acquiring a new genre mastery, right? The team is really highly skilled and specialized. They spent the last three years perfecting their approach, and they have an impressive track record, as I said. The third point is that this acquisition will help us expand our network of both players and games. Having a wide ecosystems of games is a strategic advantage because it makes you way more efficient. Basically, the idea is that when we acquire a user, they join a network not a single game. If we can keep gamers engaged between multiple titles, we amortize the cost of acquisition between those games. It is also worth noting that the new privacy policies that are adopted, not only by distribution platform, but also by policymakers around the world, increase the value of a publisher network. The reason for this is that those policies apply for traffic between publishers. For a given publisher, we can still track players between our networks. Advertising the right games for the right players within our network is now something that we can do more efficiently than ad networks themselves. The last point here is the diversification of our revenue stream. It increased the share of our ads business and also increased the shares of our games that are non-Angry Birds. We're very happy, delighted to have them join the flock. Let's go now over our live games performance, game by game. Again, I think what jumps to the eyes when we look at this slide is that we continue to see a reliable performance of our top titles, and we also see growth of "Small Town Murders" and "Angry Birds Friends." "Angry Birds 2" remains our biggest game, and it celebrated its sixth anniversary during the quarter. It grew compared to Q1 this year, but slightly declined year-over-year given the exceptional Q2 2020 performance. Also worth mentioning that we saw a 12 months peak in download for the game in July, which coincides with the hype created around the release of "Angry Birds Reloaded" on Apple Arcade. "Angry Birds Dream Blast" declined slightly from last year. Now the team is focusing on the dynamic difficulty tuning of the game, so reducing friction for player and also making the game more approachable to increase the audience. Angry Birds Friends" continues performing very well. In the quarter, we had a special events with a partner, so The Smurfs. The fans really appreciate it, and we saw an increase in downloads when we ran the event. Also, like "Angry Birds 2," we saw a bump in downloads when "Angry Birds Reloaded" was launched on Apple Arcade. "Small Town Murders" continued its growth since its release. The team now works on increasing the game's footprint for Korea and Japan. As reported in Q1, we continue to see the reliable performance of our live games given the quality of our live ops and the engagement of the players with our IP. Let's now cover the emerging titles. "Angry Birds Journey," the more casual take on our slingshot genre, going after a wide audience. We were working on retention during the quarter. I'm happy to report that this went very well. The team achieved their objectives. Now they're moving to the last phase of the soft launch, which is monetization. Then Supernatural City, second narrative Match 3 games, is also progressing well. Now we're entering the retention phase. When I cover this slide, I typically discuss about games that are already released on the market. Since we made the announcement in June that we aim at releasing a Moomin game in soft launch later during the year, I can report that everything is going as expected on that front. All right, the studio setup. This slide is meant to show the lineup of studios and what they're working on. As you might have noticed since last time, it changed yet again. We added a column. The pipeline itself was quite stable since last quarter. We have a total of seven games at development for now. More will start in the next few weeks. We have two games in soft launch. There will be a 3rd one joining the group by the end of the year with the Moomin games. We have eight games, sorry, that are either in earn or growth phase. That did not change since last quarter. The big change, obviously, is that we now have 6 studios around the world with the addition of Ruby Games. This is widening our market footprint again. Just a side note here, we're not going to count the project done by Ruby Games when we report the number of games in soft launch or live, just because the hyper-casual market has a different pace of execution and the games have a shorter lifespan. For the final part of this section, we're going to talk about the brand update, or the brands update this time with an S. In the previous call, I talked in this section about the importance of Angry Birds, especially in a market where paid user acquisition is dominating because basically, Angry Birds provide us with organic downloads for free. It's also decreasing the cost of paid acquisition of users because since consumer know the brand, when they see an Angry Birds ad, they are more likely to click. That remains very true, and this is why working on the brand remains a cornerstone of our strategy. For this reason, we said that we wanted to have a solid Angry Birds pipeline, and we largely executed on it. We have Angry Birds Journey in soft launch. We released Angry Birds Reloaded, and we have a Bad Piggies 2 game that is in development in our Stockholm studio. There's also other games in development. It's also in this strategic context that we announced the partnership with Moomins in June. This agreement is granting us the exclusive rights for all mobile platforms. When I say mobile, of course, I mean mobile phones, but also Apple Arcade, Nintendo Switch, TikTok, Facebook Instant Games, et cetera. We also have non-exclusive rights for other platforms. Like me, Rovians are excited to have the opportunity to work on a second iconic Finnish brand, and we believe this will open new doors on the creative side and on the business side as well. The first game, as said, is scheduled to reach soft launch later this year. To you, René. Thank you, Alex, and good afternoon to everyone on the call. Let's take a deeper look into the second quarter 2021 financials. In the second quarter, we saw the good momentum from the first quarter continuing in our live games. While our reported revenues in the first quarter decreased by 0.6% and the Games reported revenue declined by 0.7%, the Games revenue in comparable currency saw a strong growth of 6% year-on-year. This is a strong result also when taken against the comparable quarter last year, which was impacted by the global shelter at home and where we saw increased downloads and engagement, especially for our two largest games in the portfolio. The growth in the quarter was driven by the continued good performance of our live games, especially happy with continued good performance of Angry Birds Friends, which grew 14% year-on-year. Another key growth driver was Small Town Murders, which was released in June 2020 and has continued to scale up every quarter since the launch. Brand licensing saw a small growth of 3.3% year-on-year. The profitability in the quarter was impacted by increase in user acquisition and also slightly by increased operating expenses. The adjusted operating profit in Q2 was EUR 6.2 million and the operating profit margin 8.9%. The main reasons for larger UA in the quarter were the growth of Small Town Murders and launch of new games, Darkfire Heroes. Here again, we can see that last year's Q2 was quite exceptional in terms of profitability, driven by lower UA and also the increased downloads engagement in the key games. Looking at the first half-year, on a group level, we had 0.1% growth. Games reported revenue growth of 1.3%, and in comparable currencies, a strong growth of 8%. Brand licensing revenue declined approximately by 25% year-on-year. The first half profit, similarly as for the second quarter, was lower year-on-year due to same reasons with the user acquisition investments being on a higher level this year versus last year. The first half adjusted operating profit margin was EUR 16.2 million and the operating margin 12%. Moving on to the user acquisition investments. In this quarter, they grew to EUR 21.3 million. As we've seen since the low level of Q1 2020 last year, we were incrementally increasing the UA as we saw improved paybacks across the portfolio. In Q2, we had basically two games that drove up the UA a bit faster, and overall, the UA amounted to 32% of games revenues. In our UA investments, we continue to target the 12 months payback, and we invest up until we reach that point. Thus, whenever we change the absolute level of UA spend, it takes time for the revenue to catch up with that level as well. If we're looking a bit ahead in the third quarter, where we have now about first six weeks, we are entering the quarter with a bit lower UA run rate than Q2, and we are closer to Q1 levels in UA investments at the moment. As Alex might have mentioned here, that Darkfire Heroes, we launched in April, but it's not scaling up at the speed as we had to hope for, so we are working on improving the game's performance and optimizing the UA. This is quite normal that games have a period of data analysis, testing, and optimization of the performance and over UA payback. We are looking forward to increase the UA once we see the opportunity to do so. Alex also mentioned that despite Apple's privacy policy update, we have been able to keep a good level of user acquisition and measure our paybacks. We are learning more every day how to optimize UA in this new operating environment on the iOS platform. The user acquisition across our portfolio per game category is very similar as in the previous quarters. Most of the UA, about 70%, invested in our four growth category of games, then about 30% in earn games, of which practically everything goes to Angry Birds 2. In terms of cash flow, Q1 operating cash flow was EUR 70.6 million, lower year-over-year due to both the lower operating profit and changes in working capital. Total cash balance end of quarter, EUR 135.5 million. We had several significant cash outflows during the quarter. We paid dividends of EUR 8.8 million, and we invested EUR 5 million into Gutsy Animations, the creator of the Moominvalley TV series, as part of our total partnership with the Moomin IP. There are no changes to our 2021 outlook. Now, the acquisition of Ruby Games naturally brings additional revenue and also EBITDA for Rovio. However, we do not yet have a deal closing date, but expect to be closing during Q3 or beginning of Q4 once. After that, the financials of Ruby Games will be consolidated with the Rovio Group financials. Finally, I would like to end up with the short Ruby and Rovio pro forma P&L analysis, which looked at how the situation would have been in case the acquisition would have completed by 1st of January this year. In the middle column here, you can see that during the first half year, Ruby Games generated EUR 6.4 million in revenue, EUR 2.9 million adjusted EBITDA, with 41.1% adjusted EBITDA margin, EUR 2.9 million adjusted EBIT and 44.6% adjusted EBIT margin. The combined entity in the last column would have had EUR 142.4 million of revenues, EUR 23.9 million adjusted EBITDA, 16.8% EBITDA margin, EUR 19.1 million adjusted EBIT, and 13.4% adjusted EBIT margin. Thank you, Alex, and thank you, René. We are now ready to move on to the questions. To ask your question, please dial into the conference call number shown on the screen if you have not done so already. Operator, we are now ready to take the questions. Thank you. Our first question is from Sami Sarkamies of Nordea Markets. Please go ahead. Your line is open. Hi, thanks. I have a couple of questions. We could start from the UA spend in the second quarter, which is up EUR 4 million from Q1 levels. I guess bulk of the increase was driven by Darkfire Heroes, where you have already scaled down. What is the outlook for the third quarter that should we assume clearly lower UA spend than you had in Q2? Yeah. Thanks, Sami, for the question. It's right that the UA spend increase in Q2 was mainly due to two games. Both Small Town Murders was at a higher level, of course, than last year, and then Darkfire Heroes as a new game with a bigger delta in UA spend compared to last year. Now that we enter the Q3, we have lowered UA for Darkfire Heroes, slight adjustments across the portfolio. We want to hit those normal optimization of the payback. We are at the moment at a run rate basis closer to Q1 UA numbers than the Q2 numbers. Okay, thanks. My second question would be on the Darkfire Heroes launch, where you sort of seem clearly disappointed with sort of the first months with the product out. Can you elaborate on the issues with the product, and do you anticipate any quick fixes, or will this take a longer period of time? Yeah. Thank you for the question. This is a new genre for us, right? That's the first time that we release a game like this. We, of course, have assumption when it comes to the payback curves when we do UA investments. Turns out that those provision were not exactly right at this point. We do think that it is normal to be learning. Both our UA team and the game team have a plan. They're working on different user acquisition strategies and modification for the game to improve retention, mainly. We're going to see what the next few months are bringing. It is true to say that the scale that we reached in terms of revenues for the game was lower than expected. What you see as well, one thing to keep in mind is that what we see now in terms of the scale of the game is also a result of us scaling down on UA, right? It's not the exact scale that it should have. We're taking some time to make the modification, and once the modifications are done, we're going to scale back up. Okay, thanks. My third question would be on the Ruby Games acquisition. Revenues are down from last year. This is probably due to sort of Hunter Assassin performance. How is that game doing at the moment in the U.S. and what is your expectation regarding lifespan for such a product going forward? I think you're right there. There's a cyclicality of course, to this market, and we also need to keep in mind, I've mentioned it briefly during the presentation, that those games have a shorter lifespan. What we see now is that this game, Hunter Assassin I, is declining, and the team is working on another game similar. Right? The learnings that we do on the first game are probably not seen on that specific game, but on other games that release afterwards. Okay, thanks. I don't have any further questions. Thank you. Our next question is from Pete-Veikko Kujala of SEB. Please go ahead. Hi, Pete-Veikko Kujal a calling from SEB. A couple of questions. If we start with also with the UA spend. In the Angry Birds 2, you have been increasing UA spend now. Is that correct? Should we expect a similar level of spending to continue in the quarters to come? Yeah. I mean, the Angry Birds 2 UA spend overall, it's optimized on a month-by-month and quarter-by-quarter basis. Overall, taking over multiple cycles, it's pretty stable when it comes to the UA revenues. Of course, good also comparable sales performance from Angry Birds 2. We don't see a big change there at the moment when going into this quarter. Yeah. Understood. Thanks. On Dream Blast, is it so that in the Grow category, most of the changes came from Small Town Murders and Darkfire Heroes, but have you done any kind of UA changes to Dream Blast or Friends? For Dream Blast, similarly, we do all the time updates on that in terms of UA and optimizing the spend. That's not the major change in terms of the overall UA. On Friends, we're still basically only testing UA. There's no significant UA on that game. It's basically fully organic, you could say, the whole top line at the moment. Yeah. Fair enough. Thanks. On Ruby Games, the transaction, you first acquire the 20% and then next year, or at the latest October next year, another 50% stake. The valuation or the potential valuation for that 50% is quite a lot higher than the valuation for the initial 20%. Is there some kind of a pipeline that could realistically impact the valuation this much basically in a year? Basically, as Alex mentioned, in 2020, Ruby Games had the big hit, Hunter Assassin, and they've been working on sequel and, of course, other games as well in the pipeline. It's a pipeline that constantly keeps on changing at a very fast pace, and I think what you see here also is an opportunity for that kind of growth, and the company's in an interesting phase. This is something where we both see that if that happens, then there is a possibility for a big EV increase in that case. You see where we start at the first tranche, and then we have, of course then, ambitious growth plans for the company. Understood. One more question. You mentioned that the Angry Birds Journey has entered the monetization testing in the soft launch. Do you have any kind of industry average that how long do games in this category typically stay in this phase? That's a very good question. Those games in soft launch, you know when they enter, you don't know when they get out of there, right? That's why we split our soft launch into three different phases. The first one is more technical, then we enter retention, which is a very critical one, and it's really hard to change the retention of a game. We're pretty happy when it reaches the end of the soft launch and the end of that phase successfully, and then it enters into monetization phase. In a game like Angry Birds Journey, what's interesting is that it is different from puzzle games that we're doing in our puzzle studio, and it's also different from Angry Birds 2, right? We're trying to build something that is widely appealing, but that has those slingshot mechanics. It's hard to tell exactly how long it's going to take to tweak the monetization. We're going to follow up very closely what's going to happen in the next few months, but again, we're very happy with the result that we got in the retention phase. Yeah. Understood. More broadly, in your experience at Rovio, where do you see kind of the highest risk of canceling a project? What's the biggest hurdle to overcome out of these different stages? Yeah. Again, very much depending on the games. When I'm looking at the game, for instance, in our puzzle studio, we have a lot of experience like that. That's our whole genre mastery strategy. For years, we perfected how to do those games, so it's much easier for us to predict those things. In a case like that, in a puzzle game, when we know that it's not going to do it because the metrics are not good enough, for instance, we usually can spot it quite fast. Now, the difficulty, of course, is when we enter new parts of the market, then there's a higher risk because we have less experience in doing those games. In a case like Hardhead Squad, for instance, it did take that the game reached soft launch. We really improved our KPIs and then realized that it just wasn't enough for this market. Depending on the game, the moment where you realize is very different. Yes. I understand. Thanks a lot for this. Thank you. Thank you. Our next question is from Lyra Li of Jefferies. Please go ahead. Your line is open. Hi. Good afternoon, guys. Thank you for taking my question, and congratulations on the Ruby acquisition. I'm just wondering if you could provide more background for the acquisition. For instance, who approached whom, and if there's any other bidder in the negotiation process, and also what is the strategy rationale for Ruby to join Rovio. Yeah. There's a lot of underlying questions, so I'm going to try to answer, and please let me know if I'm missing anything there. Yes. Thank you. Sorry about it. Definitely, as I've mentioned, I've been to visit the studio. Of course, we wanted to make sure that we were seeing things similar way in terms of integration as well. As I said, we really see that there's a strategic component to it where individually, a studio like them, let's just put it this way, that they can benefit from being in a larger organization. We can benefit as well from having a larger network of both games and DAUs. With this acquisition, we basically raise our DAU by 40%-50% or something like that at this point. Again, it's a very cyclical business, if they release a game that is very successful, it can be more than that. Right now, it's ballpark what we're talking about in terms of DAUs. This additional influx of DAUs means that we can redirect users in the network, and make sure that we amortize the cost of acquisition of those users. From a strategic perspective, there was really a good fit. In terms of negotiation, can't really get into this, but it did take some time to make sure that we understood each other and then we're talking the same language. Yeah, I'm not sure if I answered everything that you had in mind. I think this is a great answer, and it's also quite comprehensive, and I definitely agree that there's a creative strategic fit between Rovio and also Ruby. I guess, just switching gear a little bit, we actually see regarding the IDFA disruption, we actually see some other mobile peers talking about there was some IDFA disruption at your external marketing partner side, which kind of hinders their ability to deploy UA efficiently. Just wondering if Rovio is also working with external marketing partner, and does Rovio also see a similar trend? Yeah. That's definitely an interesting topic. We haven't seen a trend where we had to significantly change our UA strategy, nor did we see a trend where we had to switch priorities in terms of platforms to target UA. The impact of the IDFA implementation for now, for us, hasn't been very big, to be honest. To be clear, though, we did prepare that very much in advance. We started thinking about this a year ago now, and so of course, that required a lot of modification from our backend side of things, and we also did increase the amount of ad partners that we're working with. We also started working more in top-of-funnels partners. For instance, connected TV influencers and things like that. Definitely we made some change in our approach to UA, and so far, yeah, there hasn't been any negative impact at that point. Yeah. Got it. That's quite encouraging to hear. I think that's enough my question. Thank you so much for taking my question. Thank you. Our next question is from Veikkopekka Silvasti of Danske. Please go ahead. Hey, good afternoon. Veikko-Pekka Silvasti from Danske. A few questions, maybe starting with Darkfire Heroes. Could you please describe which KPIs of the Darkfire Heroes you need to improve before you can increase the UA considerably? Is the retention or monetization or? Yeah. At the end of the day, what we're looking at is the scale that we can bring in UA. The scale is a factor of everything else. Basically, we're looking at the payback. The payback, if you have a better monetization or a better retention, then the payback is better. It can take multiple forms. What we see in this game right now is that we have exceptional conversion. The amount of players that are actually spending in the game is very high because the engagement within the game is very high. We would like to see a stronger long-term retention. We feel that this would really increase our long-term ROI, and this would allow us to scale further. Interestingly, the Discord user base of the game has increased a bit lately to about 10,000 Discord users. Have you been able to somehow get the retention up a bit, or why has this Discord user base increased in last few weeks? Yeah. We're in the middle of this kind of transition of where we're making changes in the game right now. I don't think in the past couple of weeks, I have seen a major change in those KPIs, but that was expected. We're looking more to go back to study how the changes we've made improve the KPIs in the October timeframe. Okay. Interesting. Could you give any guidance of what's the quarterly revenue run rate for the game at the moment? Yeah. I think the annual run rate that we have with the game at the moment is around EUR 4 million, and of course, that's under our ambition for a new game. Yeah. That's annual run rate, right? EUR 4 million annual run rate, meaning EUR 1 million per quarter. Yes. Oh, okay. Yes. Regarding Small Town Murders, it's been scaling nicely and steadily. Are you expecting that this kind of growth will continue, or is this basically the level where we should see Small Town Murders in H2 also? We're certainly hoping to continue with the growth, and we do see that there is some growth area that we can explore. As I said at the beginning of the presentation, Asia seems to be an interesting place where we can see growth, Japan and Korea. The team is looking at that right now. What's interesting also with this game is that we have another game right now in the pipeline that is of the same mastery. What this does concretely in the field is that the two teams can kind of challenge each other and share any kind of new ideas that they test on the market that gave good results and share together, and this way we advance faster. That's why this idea of genre mastery is really rooted in our strategy. Yeah, it really makes sense. I believe it would be smart for you to make the Moomin game a bit of a similar, this kind of story-based puzzle game, right? That's a very good idea, and you will have to wait for the soft launch period to see it for yourself. I guess I need to wait, yeah. Maybe moving on to Apple's privacy policy. How has this basically changed the in-game advertisement market? For example, you had 12% of your sales coming from in-game advertisements in 2020. Has this kind of change in privacy policy hurt your advertisement revenues so far? Thank you for the question. It's something that we need to probably get back to you as well. Overall, advertising revenues have been pretty good. Given the situation and what you would expect, we still saw a decent amount of advertising revenue in Q2 this year, especially compared also to last year. From that perspective, I think the change hasn't been dramatic, at least not from our side. It's also about optimizing a lot of other things as well in terms of advertising, not only the CPM, but also how the games are showing that and ensuring that you get maximum amount out of your inventory. From that perspective, we have been successful in optimizing that. Okay. Sounds good. Is it so that 100% of Ruby Games revenue comes from in-game advertisements? It's mainly advertising-based. But no- It's mainly advertising-based at the moment. It's a very small share of in-app purchasing in the current games portfolio. Okay. Great. Can you give any trajectory for the revenues for H2 for Ruby? Is it going to stay in decline, or is this basically now flatlining until we get new games and growth in there? How should we look at it? Yeah, I think overall, we're not giving outlook on specific revenue rates for Rovio or for Ruby for that matter for second half. I think it's re-baselining in the first half of this year. I think there's some promising games in the pipeline, and let's see how the second half turns out. Okay. Just regarding the valuation. Now, the 20% that you acquired with $10 million, the multiple that you've used in this valuation, is it the same multiple that you will use when paying the second tranche of this, when you get 50% of the company? Will the multiples stay fixed or are they going to move? This is a detail that we have not disclosed in the deals. This will not be disclosed. Okay. Fair enough. Obviously it's early days, do you have any indication of how much of these kind of ads that Ruby obviously gets its revenue from will be ads to Rovio's games in the future? This will probably cannibalize some of Ruby's revenue, right? Obviously it will boost Rovio's revenue. How should we look at this? Yeah, I mean, of course- When you start populating. Yeah. Please go ahead. Yeah, I think this is a very relevant question, but of course with our system, what we want to do is to predict how much we would make if that user would go to a Rovio game, and how much we would make if the ads would be to an external game. Right? That's where having this network with the IDFA, we can have an idea of the quality of the user. That's the whole strategic idea behind that. The idea is that if we detect that a user has more potential of revenue for a Rovio game, we redirect that user there, and if the revenues would be higher external of our network, then that's the option that we take. Interesting. That's very smart. Also when the CPM goes up, it will obviously hurt your UA, and now you basically have a hedge, you'll get your revenue up. Yes when CPM go up with Ruby. It's good counterbalance in a sense. Yeah, that's the idea as well. It gives us some flexibility. Yeah. Okay. Maybe final question. How many games Ruby Games has at the moment in its pipeline, and what kind of amount are we going to look for H2? Is the big game, what was it called, the second part of the big game, is it going to be launched in 2021? We don't have a release date. We haven't communicated on that. For the first part of your question, it's really important to understand that this business is slightly different than what we're doing here in terms of the pace of execution, right? We're talking about ideations that are multiple ideas of game per day. The whole stage gate process that we have, for instance, at Rovio, that can take several weeks or months depending on the phase of the game, it happens in a matter of days or weeks at the max, right? It's not really relevant to talk about the number of games that they have at any point in the pipeline, because once the game kind of went through the first phases and they start with a market test, they see the market test is very positive, it goes to a next phase. They assign more people to it, so they have less game in the pipeline, but those games are more promising. It's a little bit different and harder to analyze this way. I don't have this number for you right now. Okay, clear. It's fairly impressive with that small a team, a bit over 30 people being able to produce so much. I guess that's all from me. Thank you for taking my questions, and congratulations on the acquisition. Thank you. Thank you. Our next question is from Atte Riikola of Inderes. Please go ahead. It's Atte from Inderes. There's been lots of great questions already, but I still have few left. First about the Ruby Games and about hyper-casual games in overall. Could you open up the process a little bit? How it is possible to scale up those games so fast at the top of the download charts then? How that process goes? The process is, I would say similar, but very much accelerated. They test, usually those games are fast to do, they're very fast to fun. Those are games that don't necessarily have a deep meta game like the games that we would have. They're much faster to make. They're very accessible. Everybody can play them. They can work on many type of handsets, Android handsets, low-end handsets, et cetera. They have very low costs of acquisitions because the games are not specifically targeted for a specific audience, when of course, the more you target to an audience, the higher the cost of acquisition. The cost of acquisitions are very cheap. They do their marketing test, they see how it works, and if it works well, they scale. That part is a little bit like us, right? They are able to test very much in advance if there seems to be a market attraction for a certain type of game. If there is, then they scale it further. If there's not, then really fast, they go to the next idea. All right. The second question about the upcoming Moomin game. What is the target audience for the game? Are you targeting a broad audience or is it more for a particular niche or certain market, for example, Japanese market where the brand awareness is high? Can you say anything about that yet? The question's about the Moomin games, right? Yeah. About the Moomin characters. What we see, of course, is that there is a very high affinity for the brand in certain countries around the world. Of course, Finland, Sweden, Japan for sure. What we also saw is that we did some marketability tests in other markets as well, for instance, the U.S., and we saw promising results too. Right? The idea is not to make a game only for a specific territory, but to release the game worldwide. All right. That's all from me. Thank you. Thank you. Just as a reminder, if you wish to ask a question, that's 0 and 1 on your telephone keypad. We have another question from Sami Sarkamies of Nordea. Please go ahead. Hi. I still have a couple of follow-up questions. Starting from the Ruby Games acquisition. Can you disclose how much you will pay for the second tranche if we assume that the business of Ruby will remain at the level it has been during the first half of the year? No growth from current business at all. Thanks, Sami, for the question. As said, we can't disclose the mechanism of the second tranche. We have given a maximum amount. The maximum amount thus requires quite a growth success, outstanding growth from where the current run rates are. We'll get back to these once the acquisition has been closed and where we are in the future quarterly earnings. Okay. To sort of conclude, that EUR 80 million would require the business of Ruby to be multiple times bigger than it's currently. It will require very high success case in our revenue and EBITA scenarios. Okay. The second question would be on the termination of Hardhead Squad. What are your plans in this area going forward? Yeah. This happened just before the holidays. Right now we are defining those plans. We will start prototyping other games, but I don't have any announcement to do at this point. Of course, you also need to take into consideration that we will have to gradually scale down the game. There are players that downloaded this game, that paid in the game, that are playing the game. We need to do everything gracefully. Okay. Finally, if you think about the Moomin Corporation, could it become, let's say, as big a business area for you as Angry Birds? I'm thinking number of titles, even other products like animations. How are you viewing the franchise? I think that our cooperation is mainly within the game space, that's where we focus on the mobile games and other platforms as well. Of course, it's too early to say how big this will be. For certain, we have already, as Alex said, we've seen traction in certain markets. We'll start from there with our first game in development. Let's see where we can grow it from there. Of course, we have a long-term partnership here that we want to grow for a very long time. Can you provide any color on sort of the commercial terms between you and Moomin Characters that, I guess, in addition to your investments, you will be paying some sort of royalties for the use of those characters? Can you open that up a bit? Yeah, of course, we never open up the royalties in single deals, whatever it is, if it's a movie or this kind of deal. However, the commercial terms are such that if we find that the game can be scaled up, we are prepared to do that and basically can make it a very profitable business for us. Okay, thanks. I don't have any further questions. Thank you. There are no further questions at this time. Please go ahead, speakers. Thank you. Thank you, Alex and René, for answering the questions, and thank you, everybody, for joining us today and presenting your wonderful questions. That's all for us today, and we will wish you a very good day, and we will be back end of October with the Q3 results. Talk to you then. Bye.