Good afternoon, everyone, and welcome to Rovio's third quarter 2022 earnings audiocast. My name is Timo Rahkonen. I'm the Vice President of Investor Relations and Corporate Strategy at Rovio, and I will be your host for today. In today's audiocast, we will go through Rovio's third quarter 2022 financial results and some strategy updates. With me here in the studio are Rovio CEO, Alexandre Pelletier-Normand and CFO, René Lindell. After the presentation, we will host a Q&A session. In order to ask a 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. Let's kick off now. Alex, please continue. Thank you, Timo. Good afternoon, everyone, and welcome to our Q3 2022 earnings call. Thank you for joining us this afternoon. Let's start by having a look at the highlights for the quarter. I believe that the main point to highlight for Q3 is the performance of our live operation, which remains a big focus area for us. Angry Birds 2, our biggest game, grew 7.7% year-on-year, but perhaps even more impressive is the performance of our second biggest game, Angry Birds Dream Blast, which grew double-digit both year-on-year and quarter-on-quarter. During this time, the market continued to face headwinds and declined 15.3% in the U.S. according to data.ai. Our group revenue grew 8.4%, reaching EUR 77.4 million, and our adjusted operating profit margin was 15.6%. This is a good performance with slightly lower margin than Q3 2021, given the opportunity we found for marketing investments. Our UA spend in Q3 ended up in the range we guided, landing just shy of 29% of games revenues. Another interesting data point is that while the U.S. market declined double-digit year-on-year, it only declined 1% quarter-on-quarter, which is a positive sign for recovery. We continue to be optimistic about the long-term growth potential of the mobile gaming market. We took advantage of the last few months to execute on our strategy and to make structural changes aimed at strengthening our positioning for future growth as the market recovers. Those changes will be covered later in this presentation. The last point to highlight is that we made good progress in our games and development, and we have new information to share here as well. Before we dig deeper into those plans and with animated content. The study showed that Angry Birds is the third most watched IP for teenagers aged 12-16 in the U.S. on Netflix, showing that our brand efforts for that segment are bearing fruits. Let's now look at the gross bookings per game. As a whole, our gross bookings increased 6.2% year-on-year and declined 2% quarter-on-quarter. Those results were supported by our top games, which did particularly well. Angry Birds 2 continued its solid performance since the beginning of the year and grew 7.7% year-on-year in Q3. It is interesting to note that the game also grew 4% in the U.S. in comparable currency. The team is working on a new bird with totally new mechanics to be introduced before the end of the year. This is exciting for our fans as the last time we introduced a new bird was for the release of the Angry Birds Movie 2 in 2019. Angry Birds Dream Blast had a great quarter, growing 17.5% year-over-year and 25.3% quarter-over-quarter. We're excited to see the strong performance after several quarters of stability. Our efforts on both UA and game developments are showing positive results, and we continue to work on a plan to grow the team further, both in Espoo and in Barcelona. More on this later in this presentation. The current quarterly run rate for the game is EUR 20 million. Angry Birds Friends gross bookings declined 2.2% year-on-year, and we're not used to that type of performance from Friends, and it is explained by a technical issue with one of our partner which caused some players to temporarily lose access to their progress. The issue was fixed but created a gap in revenue generation for Q3. However, the game's daily active users and revenue run rate recovered. Seeing our top games growing is a good segue to this section covering strategy. We launched several initiatives in the past months to strengthen our positioning in the market. Let's first start by resuming the main growth drivers we identified, and then we will cover the recent actions for each. One of the main points we talked about in our CMD in May was the importance of our live games and the potential we saw to make them grow further. We started to reinforce our teams and have additional plans to accelerate. Of course, it is also important to have a rich pipeline of new games to create additional growth vectors for the future. We currently have 10 games in different stages of development, and I will share more on this as well today. Finally, we suspected that the market would bring opportunity to strengthen the flock with new talent. I will shortly introduce a small new studio that joined us recently. Pursuing this strategy had an impact on our roster of studios. The first one is that in order to be able to continue to grow our live games, especially in the puzzle studio, we believe that we need a new talent pool to recruit from. We evaluated different options and decided to open a new location in Barcelona, Spain. This studio is a bit different, as for now, they will exclusively work on supporting our current live games that are growing. They will focus on level design and live ops together with our puzzle studio in Espoo. This is also allowing us to do in-house things that were largely outsourced until now. Another change is that we now have a second studio in Montreal. A small team of industry veterans decided to jointly leave their former employer to join Rovio. They are specialized in very fast prototyping and market test, and aim at producing hybrid casual games. We internally call the team Studio Six. Finally, we always strive to concentrate our resources where we see the biggest opportunities, and accordingly, we started negotiations on plans to reorganize the battle studio in Espoo, which is focusing on strategy games. Our current plan would be to move most of the positions within that studio to other areas where we see better market fit and growth opportunities. In the previous slide, I briefly introduced Studio Six, our second studio in Montreal, but there are also some changes regarding our historical studio in the city. Their mission is now to expand Angry Birds beyond mobile, and they have one game in development, which is a multiplayer cross-platform title targeted at the Gen Z audience. We appointed a new studio head to support the studio in this mission. Her name is Andréane Meunier, and she has a great background to achieve this task. Among other things, she occupied many leadership roles within Ubisoft, including on Assassin's Creed. She also worked at Unity and Google Stadia. We believe that her personality and her past experiences are very fitting for bringing new Angry Birds experiences across platforms. The last part of the strategy to cover is our pipeline of new games. All of our studios are working on new titles, and in total, we have 10 games in different stages of development. I will now briefly introduce some of the multiplayer shooter game currently called Hunter Heroes, and a second is offering a single-player gameplay, and it's called Hunter Assassin 2. Ruby also has- Alex, good afternoon to everyone on the call. Let's take a deeper look at the third quarter and year-to-date financials. In the third quarter, the reported revenues grew by 8.4%. The revenue growth was driven by Ruby Games acquisition, strong U.S. dollar versus euro, and the new game Angry Birds Journey that launched in January this year. The comparable revenue means that constant currency and including Ruby Games only for the month of September, and that declined by 4.6%. The adjusted operating profit for the quarter was at a good level at EUR 12.1 million, and the adjusted operating profit margin was 15.6%. It was a good level of profitability, even though lower than last year, which had a very high profit margin due to much lower user acquisition in that comparable quarter. Also, the Adjusted EBITDA was solid at EUR 15.7 million, and the Adjusted EBITDA margin was over 20%, with the same items impacting the EBITDA year-on-year as the EBIT. If you look at the year-to-date revenue for the first three quarters, we have a significant revenue growth of 16.1%, again, driven by Ruby Games, a launch of Angry Birds Journey, and strong U.S. dollar. The comparable growth is 2.1%, and this has to be compared with in the context that in our main market, U.S.A., we have seen a decline year-on-year during this whole period. The year-to-date adjusted operating profit was EUR 33.3 million, which is about EUR 3 million ahead of last year's level at this point of time. Our adjusted operating profit margin was about 1% lower at 13.8%. The higher absolute EBIT was driven by higher revenue during this period, and the lower profitability was related to PPA amortizations from the Ruby Games acquisition, which amounted to about EUR 2.9 million. Also, the year-to-date Adjusted EBITDA grew and was EUR 6 million higher year-on-year and landed at EUR 44.3 million, but EBITDA margin was similar to last year's level at 18.4%. Thus, we can see a larger absolute improvement in EBITDA than in the EBIT, and the difference was explained by the Ruby Games PPA amortizations, as said in the previous slide. If you look at the total UA investments in Q3, those were EUR 21.3 million, so a bit up from Q2 this year and clearly up from Q3 last year. It amounted to 28.7% of games revenues, which was in line with our expectation of between 25% and 30% that we said in our last earnings call in August. The increase from Q2 this year mainly due to Angry Birds Dream Blast, which continued to scale up, even though Angry Birds Journey UA was a bit lower quarter-on-quarter and of course significantly lower compared to Q1. Due to the fast scale up of Angry Birds Dream Blast UA, its strong top-line growth and consequently its lower game level profitability, the game has in fact turned its profile into a growth game in our portfolio, and we have also reclassified it as such in this earnings report. The Q3 operating cash flow was EUR 8.6 million, which was lower year-on-year due to lower profit and changes in working capital. Total cash balance grew to EUR 192.1 million. Yesterday, on the 27th October, after the Q3 reporting period, the second tranche of the Ruby Games acquisition was paid in cash terms. This amounted to $19.7 million and shares worth of $13.1 million, or just below 2.4 million shares that will be paid from our treasury shares. We also made a slight update to our full year 2022 outlook with regards to the revenue, and it's now as follows. We are expecting the reported revenue to be significantly higher and the revenue at comparable effects to be somewhat higher year-on-year. The second part of the outlook, which concerns the profit, remains unchanged. We also give additional guidance for user acquisition investments in the ongoing quarter. During Q4, we expect user acquisition to be between 28%-33% of games revenues. In other words, slightly up from Q3. This is due to Angry Birds Dream Blast continuing to perform well and starting the ongoing quarter at a higher UA run rate versus Q3. This also means that Dream Blast revenue is still growing and the quarterly run rate is around EUR 20 million. Thank you, Alex and René. We are now ready to move on to the questions. Operator, please. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Veikko-Pekka Silvasti from Danske Bank. Please go ahead. It's Veikko from Danske Bank. Can you hear me? Can you repeat, sir? Yes. Perfect. Let's start with a few questions on the hyper-casual. It was quite weak and quite big decline quarter-on-quarter. What's happening in the ads market at the moment? Can you describe how, for example, the weakness in what we've seen in Meta and Google, how that affects Ruby Games and your ads business? Yeah. Without entering into all of the mechanics, the effect that it has on the hyper-casual of the weaker ads market is that the downloads declined sharply quarter-on-quarter. I believe it was 18% quarter-on-quarter for the hyper-casual market. As a result, what's happening with Ruby Games is they're accelerating their transition towards hybrid-casual games. That's why, you know, they have more games in the pipeline as we covered during the presentation. We really feel at this point that this is a strategy that makes the most sense for Ruby Games. Okay. Does this mean that the CPIs are lower as well if the ads market is weak? Yes. Yeah. At least according to the data that I follow from data.ai, you've kind of capitalized on this. Angry Birds 2 has been in the top 30 downloaded games in the U.S. during the Q3. Can you just explain what's happening with the downloads of Angry Birds 2, and what's your expectations of the game for, let's say, 2023, given that the base of gamers should be up quite significantly? Yeah. I mean, the game has been doing well since the beginning of the year, which allowed us to make additional UA investment. What's interesting with the game is that the profile of the DAUs changed slightly because, you know, the game performed particularly well in the U.S., where we were able to grow it, you know, even in comparable currency. That's very positive. We have lower DAUs on other countries that were historically not performing as well, right? We have higher paying users in the game right now. We continue to make, you know, events for the games, and it looks good so far. We talked about the addition of a new bird in the game in December, which is highly anticipated by the fans. You know, we have a nice pipeline of new things to add on the game next year. You know, the game has been performing very steadily and even growing. That looks good. Great. Did I understand correctly that the base of gamers is larger in Angry Birds 2 now than it was, let's say, in the beginning of the year? No, it's actually lower, but it's the provenance of those players or where they are changed, right? So for instance, we have less users, for instance, obviously in Russia and China and more in the U.S. Okay. Less players and higher spenders. Clear. Let's see. Can you describe the normal timeline of development to launch of your hybrid casual games? Now obviously you're shifting your strategy a bit towards this kind of hybrid casual in both Ruby Games and then this new studio in Montreal. What's the timeline? Should we expect this is like two quarters or one quarter or obviously it varies, but on average? Yeah, that's a very good question because that's a little bit of a new segment for us and for the market for that matter. What's important to understand with those games is that they get tested on the market extremely fast, right? It's very different than casual games where, you know, sometimes we take, you know, six months or a year to test them to start the soft launch. Here we're talking about, you know, weeks or months, right, to test this. Now it all depends on how they performed in soft launch. We expect that the, you know, quote-unquote, "fail rate" of those type of games to be higher than casual games, meaning that when they reach soft launch, the probability that they will not reach global launch is probably higher than what we see in casual games, but they reach that point much earlier, which allow us to make, you know, the changes, if needed or to continue with the game if it looks good. How long between the soft launch and the global launch is a good question. I guess we'll see soon with the games that Ruby is putting in soft launch right now. Okay. Quite new initiative for all of us, and let's see how it goes. Okay. Then, moving on to the other games. Angry Birds 2, Dream Blast, Friends, they are looking solid, they are growing and so forth, and you're probably growing the teams as well. How about Angry Birds Journey? What's your outlook for that game, and are you still expanding the team and investing into the game? No, we're not expanding the team at this point, but we keep the same team that we had on this game. What we saw in the past few weeks is that the run rate of the game stabilized. As you remember, we reduced the UA investment in the past few quarters. As a result, the top line of the game also was reduced, and now we see that it's stable. Obviously, it's not at the level that we have as an ambition for a new game. I guess we have to remember and keep in mind that for games like Angry Birds 2, Angry Birds, you know, even what we saw with Dream Blast now and Angry Birds Friends, it's completely possible to change the scale of those games as we worked on them. The team is still working and iterating on the game. They haven't quite found the right levers to move the needle, and you know, we'll see what's gonna happen in the next few quarters as they continue working on it. Okay. Work still continues, and you've shown already that you're able to actually turn the tide for games like you did with the Dream Blast. On another topic, have you seen any updated estimates on the growth of the mobile gaming market in the Western economies and, well, in the U.S. specifically? Now that the consumer is getting under pressure, we've seen sharp decline this year, but 2023 shouldn't be probably too much better, or what's the estimate at the moment for the market growth? Yes, of course, it's very hard to kind of give you the short-term view. I think nobody has a clear understanding. As we said in the report as well, that in U.S.A., we saw this plateauing of the in-app purchase market in Q3, which kind of, at least for now, looks like the decline Q on Q slowed down. Of course, Q4 is seasonality plays a role, and typically Q4 is the best season for mobile games. You know, from that perspective, I think we're you know, optimistic when we come into this season now. For next year, I think of course what impacts also is that you know, at some point your comparables will look different than this year and that kind of impacts. From a long-term perspective, I think we do agree with the estimates that there is a big demand for gaming across the platforms and with mobile being still the biggest one in terms of estimates for the kind of long-term growth. That's what we think, you know, still is very much possible. Of course, short-term fluctuations are hard to predict. Okay. Final from me. Angry Birds Dream Blast reclassified as growth games. Do you really think that this is sustainable change in the profile of the game, or is this just, you know, a quarter of strong performance, maybe two, and then back to the, you know, EUR 16 million, EUR 15 million run rate? What makes you think that this is sustainable? Yeah, I mean, there's been, you know, this is not coming as news for you, but that's been live ops. You know, those live games that we have has been quite a focus for us, and we talked about it as well, you know, since the CMD in May. You know, we approach the game differently. There's more people work on the game, doing more live ops. We have more people working on analytics. We open new channels to do UA for the game. We have more creatives that we use to do, you know, marketing for the game. For now, all of this together created new opportunities for UA. As you know, we're very disciplined when it comes to UA. When we do those investments, it's because we know that the money's gonna come back following our rules, which is, you know, like a year to get the full return. We still see those opportunities, right, as we enter Q4. It seems that we're gonna be able to continue in that trajectory, right? We have a run rate right now of EUR 20 million quarterly on the game and it looks stable for now. Okay. Thank you. That's all for me. As a reminder, if you wish to ask a question, please dial star five on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. Thank you everyone for your questions and joining us today. We wish you all a nice weekend and Happy Halloween.