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The Finnish company's recent troubles have stemmed from tough
competition and increased user-acquisition costs, as well as
high dependency on the Angry Birds brand that was first launched
as a mobile game in 2009.
However, adjusted operating profit in the first quarter of 2018
roughly doubled year on year to 10 million euros ($12 million),
with Rovio citing growth in its top games and lower marketing
costs.
Sales, meanwhile, were down 1 percent at 66 million euros on
declining revenue from its 2016 Hollywood movie.
Shares in Rovio, which listed last September, rose 5.6 percent
on the news, recovering a some of the 50 percent decline after
the February profit warning.
"Quarterly projections are difficult for the gaming companies as
costs may fluctuate significantly between quarters," said OP
Bank analyst Hannu Rauhala, who has a "buy" rating on the stock.
"But the report nevertheless shows some stability in their
performance, which strengthens confidence."
Rovio reiterated the full-year outlook that had disappointed
investors in February, when it said that sales could fall this
year after jumping 55 percent in 2017.
In the past months Rovio has announced the departures of its
head of games and its investor relations chief while cutting the
pay of its chairman and vice chairman.
Rovio expects a movie sequel to boost business next year and the
company has also stepped up investments in its spin-off company
Hatch, which is building a Netflix-style streaming service for
mobile games.
(Reporting by Jussi Rosendahl; Editing by David Goodman)
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