Rovio Entertainment, the maker of the “Angry Birds” cell 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, as properly as excessive dependency on the Angry Birds model that was first launched as a cell sport in 2009.
However, adjusted working revenue within the first quarter of 2018 roughly doubled yr on yr to EUR 10 million ($12 million), with Rovio citing development in its high video games and decrease advertising prices.
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 among the 50 p.c decline after the February revenue warning.
“Quarterly projections are difficult for the gaming companies as costs may fluctuate significantly between quarters,” mentioned OP Bank analyst Hannu Rauhala, who has a “buy” ranking on the inventory.
“But the report nevertheless shows some stability in their performance, which strengthens confidence.”
Rovio reiterated the full-year outlook that had dissatisfied buyers in February, when it mentioned that gross sales might fall this yr after leaping 55 p.c in 2017.
In the previous months Rovio has introduced the departures of its head of video games and its investor relations chief whereas chopping the pay of its chairman and vice chairman.
Rovio expects a film sequel to spice up enterprise subsequent yr and the corporate has additionally stepped up investments in its spin-off firm Hatch, which is constructing a Netflix-style streaming service for cell video games.
© Thomson Reuters 2018
Adapted From: Gadgets360