Angry Birds Maker Rovio Gains Ground as Profits Rise

Rovio Entertainment, the maker of the "Offended Birds" cellular video games and film, posted higher than anticipated quarterly revenue on Thursday, representing a fillip to investor confidence dented by a dramatic revenue warning in February.

The Finnish firm's latest troubles have stemmed from powerful competitors and elevated user-acquisition prices, in addition to excessive dependency on the Offended Birds model that was first launched as a cellular recreation in 2009.

Nevertheless, adjusted working revenue within the first quarter of 2018 roughly doubled 12 months on 12 months to EUR 10 million ($12 million), with Rovio citing progress in its high video games and decrease advertising and marketing prices.

Gross sales, in the meantime, had been down 1 p.c at EUR 66 million on declining income from its 2016 Hollywood film.

Shares in Rovio, which listed final September, rose 5.6 p.c on the information, recovering a a number of the 50 p.c decline after the February revenue warning.

"Quarterly projections are tough for the gaming firms as prices might fluctuate considerably between quarters," stated OP Financial institution analyst Hannu Rauhala, who has a "purchase" ranking on the inventory.

"However the report nonetheless reveals some stability of their efficiency, which strengthens confidence."

Rovio reiterated the full-year outlook that had dissatisfied traders in February, when it stated that gross sales may fall this 12 months after leaping 55 p.c in 2017.

Prior to now months Rovio has introduced the departures of its head of video games and its investor relations chief whereas slicing the pay of its chairman and vice chairman.

Rovio expects a film sequel to spice up enterprise subsequent 12 months and the corporate has additionally stepped up investments in its spin-off firm Hatch, which is constructing a Netflix-style streaming service for cellular video games.

© Thomson Reuters 2018