Supercell, the mobile gaming firm, has posted that its profits and sales are falling for the second year in a row. The dropping percent is 26 and people are confused.
You might know this Finnish firm if you play either Clash Royale or Clash of Clans, the viral games, on your iPhone. Their developer’s value used to be $10bn (£7.8bn) after Tencent, the Chinese tech giant, has bought in 2016 an 84 percent stake in the business.
Even though its game, Clash of Clans, takes the fourth place on the most-widely-played smartphone games of 2018, Supercell mentioned that its earnings before tax, interest, amortization (Ebitda), and depreciation fell from €729m to €537m (£470.8m) in 2017
A year ago its revenue was €1.8bn, but it looks like it fell by 24 percent reaching €1.4bn. With that being said, Supercell has never experienced such a small income since 2014.
Hay Day, Clash of Clans, Boom Beach, and Clash Royale are all four revenue-generating games for Supercell, but starting with last years that rate began to fall compared to the more than $1bn flow in revenue since they launched.
Many mobile gaming firms in the industry have similar woes to Supercell which means that they are not the only one struggling. The reason behind this stays in the popularity of games such as Playerunknown Battlegrounds and Fortnite which attract more players day by day.
According to Ilkka Paananen, Supercell’s chief executive officer (CEO), seeing the numbers grow would be a dream come true, but for them, as a company, it is more important to focus on short-term financial metrics.
If we take a look at the range of games that are being launched, we can’t say more than the fact that Supercell should expect even more falls.
Agnes is a technical writer, being in touch with reports to come up with the latest tech leaks.
