Supercell profit tumble continues - Mobile World Live

Supercell profit tumble continues

12 FEB 2019

Finland-based Supercell’s profit fell 26 per cent in 2018 as its biggest titles, Clash of Clans and Clash Royale, failed to keep up their performance from earlier years.

The company, in which internet giant Tencent holds a majority stake, said profit was €537 million, down from €729 million in 2017. Revenue fell from €1.8 billion to €1.37 billon in 2018.

Supercell did not disclose sales figures for its games, but Reuters reported CEO Ilkka Paananen as stating revenue from Clash of Clans and Clash Royale recorded the greatest declines.

In July 2018, SensorTower reported Clash of Clans continued to be a strong performer for Supercell some six years after its launch, generating revenue of more than $30 million per month on the App Store.

Paananen highlighted the ongoing importance of the Clash titles to Supercell’s earnings, stating in a blog that those games along with Boom Beach and Hay Day made up the bulk of the company’s revenue, with each having generated more than $1 billion since their launch.

While conceding “it would be great if the numbers always grew from the previous year,” the CEO explained that “focusing on short-term financial metrics has never been the most important thing for me…our approach is to focus on building great teams…and great games”.

Supercell experienced its first-ever drop in profit in 2017, again partly due to falling revenue for Clash of Clans.

Brawl Stars
Paananen expressed high hopes for Brawl Stars, Supercell’s fifth and newest game, which launched in December 2018.

Earlier this week Sensor Tower said the title racked up around $110 million in consumer spending within 60 days of launch, “a major milestone” for the game.

It added that the game is yet to launch in China, which it said is likely due to a pause on approvals of new video and mobile games in the country.

China is the fourth-largest market for Clash Royale, indicating a launch of Brawl Stars there could deliver a spike in revenue.

Supercell is also planning to build a games studio in Shanghai.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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