Maker of widely known game ‘Angry Birds’ Rovio Entertainment (ROVIO) reported its first quarter results for the year generating an increase of about 75% in profit for the quarter.
In the first quarter ended March 31, Rovio reported operating profits 13 million euros ($14.1 million), a significant increase from the 7 million euros the Finland based company registered in a similar quarter last year.
Unfortunately, as the company’s operating profit was increasing revenue was declining, in the quarter Rovio posted revenue of 66.6 million euros which insinuates a 6% decline from the company’s revenue in the previous quarter.
Rovio attributed the huge increase in operating profits to lower costs, the company’s CEO, Kati Levoranta, said smartphone game Angry Birds 2 was a major contributor to the company’s good quarterly results.
“The high operating profit of the quarter was driven by the low level of user acquisition and the stability of our key games, especially Angry Birds 2,” said the CEO.
He added that the company is not in a position to determine the impact coronavirus pandemic will inflict in it because he thinks it’s too early to make any speculations.
The company acknowledged an increase in download numbers during this pandemic time which greatly affected its revenues.
“In our games, we have seen an increase in the number of downloads as well as user engagement and also some uptick in revenues in March and April,” said Rovio’s spokesperson.
Rovio declined to publicly release its financial guideline for the year but the company said only operating profits will be adjusted from its initial full year guideline.
“Due to lower user acquisition investments and the planned cost savings in Hatch Entertainment Ltd., our adjusted operating profit improves,” said the company.
The company finalized by announcing that it will be launching three new games in the market before the year ends.