Finland’s Rovio reported a sharp drop in revenue for the three months ending in June as revenue from the hit Angry Birds movie continued to ebb. But the company said gaming revenue jumped 6.4 percent in the quarter, offering a hopeful sign to investors.
In its earnings report released today, the company said it had $81.7 million in revenue for the second quarter, down from $98.09 million for the same period one year ago. Rovio CEO Kati Levoranta said in a statement that such a drop was anticipated because the company had experienced a peak in revenue from the 2016 Angry Birds movie in the same quarter a year ago.
By contrast, gaming revenue continued to recover, led by Angry Birds 2. The company had $74.31 million in gaming revenue in Q2, up 6.4 percent from a year ago. Daily active users rose to 8.8 million, up just a tick from 8.7 million in the previous quarter.
The company noted that it has struck new branding deals recently that it hopes will nudge such revenue back up as it continues work on an Angry Birds sequel which is scheduled for release in 2019 and is currently in production. And it continues to invest in Hatch, its spinoff that offers a livestreaming game service.
Overall, the company stuck to a full-year projection for revenue that had shocked investors back in February when the company said revenue overall was likely to fall. It was not the news most wanted to hear after the company managed to IPO last fall.
Its stock remains down by more than half since its public debut last September.