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Home / SmartTech / Supercell's revenue will fall sharply in 2018 – to $ 1.6 billion and a profit of $ 635 million

Supercell's revenue will fall sharply in 2018 – to $ 1.6 billion and a profit of $ 635 million

Supercell had a bad year when it comes to finance in 2018, but these theses would be enviable for any other gaming company in the world. The Finnish manufacturer of games such as Brawl Stars, Clash Royale and Clash of Clans, with a turnover of 1.6 billion US dollars, a profit of 635 million US dollars.

This was a decrease compared to 2017, as Supercell from Helsinki reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 810 million, with sales of $ 2.029 billion in 2017. This was also lower than in 2016, when Supercell reported revenues of $ 2.3 billion and EBITDA of $ 1 billion.

This could be cause for concern at any other company. But Supercell, which Tencent mostly owns, is not an ordinary company. With only 283 employees, Supercell was able to achieve this total profit ̵

1; or about $ 2.24 million and sales of $ 5.65 million per employee. Such numbers are unknown in most game publishers and studios. And the CEO's message over the year shows that Supercell is like no other company in gambling or capitalism.

"Some people have asked me if I am disappointed as CEO of the company that the numbers have dropped the previous year (and the year before)," said Ilkka Paananen, CEO of Supercell in a blog post. "Of course, of course it would be great if the numbers were always growing over last year. Concentrating on short-term financials, however, was not the most important thing for me or for us as a company. Our concern is that if you are driven by short-term financials, you may be tempted to publish games of average quality too early or overly focus on monetization. Instead, we focus on building great teams and a culture where these teams can focus on building great games.

Above: Ilkka Paananen, CEO of Supercell, believes in small developer cells.

Source: Dean Takahashi

Under Finnish law, Supercell is required to report once a year on its financial image Paananen said his company was proud to pay $ 122 million in taxes to Finland in 2018. He said the company was not trying to "optimize" its taxes.

Over the year, Supercell Brawl brought stars to the Market, his first new mobile game since Clash Royale in 2016.

"Given this long gap, everyone was very eager to get into a brawl," Paananen said, "I suspect Supercell has even put pressure on itself, That's why I'm so proud of the fact that the Brawl Stars team has been taking the time to bring the game to where it's desired in terms of quality Let's all make Supercell work: we should only publish games that offer the best possible experience for our players. Games that we are proud of. If this takes time, then so be it.

During the year, the Brawl Stars community created 19 of their 65 cards. After launch, Brawl was the most downloaded game in more than 50 countries, including some major Asian markets such as Japan, South Korea and Taiwan. Eighty million people have played it by now and the rating is 4.5 out of 5 stars. And it has not yet come to market in China.

Paananen said the company's dream is to create games that will be played for years to come, forever remembered. For this purpose, Supercells Hay Day and Clash of Clans both celebrated their six-year anniversary.

Clash of Clans and Clash Royale underwent important changes throughout the year, with Royale receiving its own generation of Clan Wars and Clash of Clans Town Hall levels for both villages as well as the new rival Clan War leagues. The teams at Boom Beach and Hay Day devoted themselves to the work to create something great that they will bring to their players this year, Paananen said.

Around 25 million players participated in the In App Challenge events, which served as the team's qualifying tournament for the Clash Royale League World Final.

Top: Brawl Stars by Supercell.

Credit: Supercell

"Each of our first four games – Hay Day, Clash of Clans, Boom Beach, and Clash Royale – has now brought in more than $ 1 billion in lifetime sales," said Paananen. "Even more amazing is that the two clash games together reached ten billion dollars. To put it in context, this is more than a big movie series like The Lord of the Rings and Harry Potter which were filmed at the box office and alongside iconic game franchises like Warcraft and League of Legends.

He added, "For someone who has been involved in mobile games since 2001, these characters are a great reminder of how far our industry has gone and what wonderful things are bringing us games. When I grew up, games were mostly played by teenagers like me. Today, games are played by people of all ages and sexes. Players come from all possible countries, from all countries of the world. And there are billions of people playing.

Last month, there were 25 million active groups playing Supercell games, all created by players with an average size of 10 players.

While Supercell can afford to hire As a new employee, she wants to stay small with the goal of maximizing innovation and quality and minimizing bureaucracy, leading to the best games, Paananen said.

"One of the really big moves we made in 2018 was the decision we made to start building a game studio in our office in Shanghai, China," he said. "In the beginnings of Supercell, I thought we would always be a studio business just to keep things simple. However, I changed my mind as I got to know the Chinese gaming industry better. I admire how the best developers in China think about social gameplay and how many new quality content they bring to their players every month. There is definitely a lot we can learn from western developers. "

The Chinese studio will develop games for the world market. He noted, however, that Supercell continues its policy of killing games that do not meet the team's own standards.

"Supercell is a serial killer of games, and we'll keep this high beam for all the games that were created in our Shanghai studio," he said. "We only release games that we are proud of and that we believe would be played for years, so it may take a while for the first game to come out of Shanghai."

<img class = "size-full wp-image-2400259" src = "https://venturebeat.com/wp-content/uploads/2018/10/clash-royale.jpg?resize=1024%2C513&strip= all "alt =" The Clash Royale League World Final goes to Japan. [19659024] Above: The Clash Royale League World Final moves to Japan.

Credit: Supercell

Supercell has its influence through investment in game studios including investment in teams at Redemption Games (Carlsbad, California) and Trailmix (London) and Everywear Games (Helsinki).

These studios participate in previous investments in Space Ape (London), Frogmind (Helsinki) and Shipyard Games (Helsinki).

"We started investing a few years ago. We wanted to make a bigger impact in the world of games without having to expand our internal studio too much," Paananen said, "compared to traditional ones and usually very financially strong investors, our approach is different The key idea is to give the teams full control over their own destiny, as we do with our own internal teams. So they can focus on developing the best possible games without the usual burdens associated with investors. "

As in 2019, Paananen said Brawl Stars will have many updates and will soon debut in China. [19659002] Boom Beach will soon have a big "Warships" update, and Hay Day will get a big update, albeit maybe on a longer schedule. The Clash of Clans and Clash Royale teams are also working on updates.

Above: The Clash of Clans Builder

Credit: Supercell

To produce more content, Supercell has worked with some trusted external studios. This is a first for the company. And Supercell is also investing more in tools and technologies to be more efficient.

"What it all means for a game like Brawl Stars is more brawlers, more skins, and more environments that are added more often," Paananen said.

He said that although many games in the works could probably be killed, one or two games could make it to the beta test this year.

Supercell will also launch a new kind of coding school, Hive Helsinki. 19659002] "What makes it unique is that it has no teachers, no classes or books. Instead, it is based on hands-on coding tasks (including creating games!) That students perform in groups. Also, anyone can apply to the school through an online test that tests their logic skills. No previous programming experience is required, "he said. "The school is also free of lessons and is based on a revolutionary concept called Ecole 42 (developed in Paris). The people behind were so kind to let us use the same concept here in Helsinki. One of our big goals behind the school is making code learning accessible and accessible to all. We want creative people from all walks of life and all backgrounds to be given the opportunity to become world class programmers. The school has a good start; The online test has been in operation for less than a month and a few thousand people have already passed the test and reached the next qualification phase. "

Finally, Paananen said Supercell 2019 will be completely carbon neutral Not easy, as Supercell employees travel more than 2000 days a year, consuming hundreds of millions of players with Supercell energy for 6,400 servers. This year, the company will use carbon offsets, such as Southpole, to become carbon neutral.

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