Rovio recorded a significant increase in operating profit due to the Angry Birds 2 game achieving record revenues, in the opening quarter of 2018.
The group said its net profit more than doubled to 7.1 million euros ($8.4 million) year-on-year after taxes, while its total revenue decreased slightly by one percent to 65.7 million euros.
Finnish mobile gaming company Rovio increased profitability in the first quarter by 88 per cent after the sequel to its popular Angry Birds game generated record revenues and it continued to make money from the Angry Birds movie.
On the revenue side, the company reported that sales in the three months ending in March fell 1 percent to $78 million. The drop was mainly due to declines in revenue from brand licensing, while gaming revenue actually ticked up a bit by .4 percent. On the profit side, the company doubled its profits to $12 million for the quarter as it cut marketing costs.
Angry Birds game maker Rovio Entertainment forecast a short-term decline in profitability, saying its spending on gaining users will take a longer time to generate positive returns.
“Game development requires continuous innovation and passion. Our creative, multitalented teams produce compelling gaming entertainment and I believe that Rovio has the talent, expertise and passion required to stay at the leading edge of games development,” said Rovio CEO Kati Levoranta in statement.
In February, the group said it expects 2018 revenue to be between €260 million and €300 million, compared with €297 million in 2017. The prediction was well below market forecasts of around €337 million.
However, on Thursday the company said profits before tax had increased to €9m in the three months to March 2018.
Rovio is working on ten games which are in different phases of development, one of which is in soft launch.