Finnish mobile games and animation studio Rovio Entertainment swung to a profit in 2016 as its Angry Birds movie helped boost its game sales and tackle competition from challengers like Nintendo's Pokemon GO.
However, analysts noted the company must find new franchises and reduce its dependence on the Angry Birds brand to succeed in the highly competitive game industry.
Following years of falling earnings, job cuts and divestments, Rovio's revenue increased 34% in 2016 to €190m.
The operating result improved to a profit of €17.5m from a loss of €21m in 2015.
"Things clicked together in the games business and the movie brought a lot of boost to our brand," the company's chief executive Kati Levoranta said at the company's headquarters.
"We have a clear focus and aim, and we have learned our lessons," the CEO added.
The original Angry Birds game, in which smartphone players use a slingshot to attack pigs who steal the birds' eggs, became a phenomenon in 2009.
Rovio capitalised on the brand early on by licensing its use on consumer products. But the franchise began to falter amid new challengers, prompting Rovio to cut more than 300 jobs.
Rovio sought to revive the brand with an animated 3D Hollywood film, financed from the firm's pockets.
Released in May, the movie earned around $350m at the box office, though Rovio will record most of the movie revenues for 2017 and 2018.
The mobile game industry was stunned last year by the success of Pokemon GO, in which players walk around trying to catch characters.
Still, Levoranta said Rovio had managed to develop its existing titles, such as Angry Birds 2 and Angry Birds Friends, and acquired new players that made more in-app purchases.
This year, Rovio is looking to launch new games, while a movie sequel is in its plans for the longer term.
The company, which has 476 employees, announced last month it would build a new team of about 20 people in London, tasked to create new multi-player games with a focus on new characters.