The success of several of these apps made it possible for earnings to break the $1.7 billion mark last year.
Supercell Oy, the company behind hit mobile games such as Hay Day and Clash of Clans, has managed to double its own earnings due to the continuing popularity of this kind of app throughout 2014, bringing its revenues to $1.7 billion, that year.
The company from Finland has actually seen a tripling of its earnings that are specific to its top games.
The annual revenue that the company brought in from its leading mobile games – Hay Day, Clash of Clans, and boom Beach – actually managed to triple in its growth, last year. Supercell explained that its earnings from last year had risen from having been a notably lower $570 million in 2013. While that figure was, obviously, still very healthy, this also shows a staggering increase over the span of a year. Its pre-tax earnings, before interest, depreciation, and amortization, were $565 million, last year. In 2013, that figure had been $267 million.
A great deal of the success of these mobile games came from certain specific markets around the world.
These markets – such as China and Korea – were exposed to highly localized and strategic mobile marketing campaigns that proved to be greatly successful and drew significant appeal. This type of achievement has proven to be a very challenging one for Western game developers in the past, said Ilkka Paananen, the co-founder and the chief executive at CEO, when speaking at a news conference.
SoftBank Corp, a telecom giant from Japan, purchased a 51.4 percent share of Supercell in October 2013 for $1.5 billion, an amount that they may now be considering to be a bargain, considering the consistent success and growth of the company, so far.
That company will be receiving a $170 million dividend payout from the mobile games firm as a result of the earnings that were brought in throughout 2014. This, according to data that has been made available by Supercell. It will be interesting to watch the success of the company to see whether it will be capable of maintaining this trend instead of allowing the achievement to become a flash in the pan.
Newzoo credits the high mobile growth rate to “organic growth” for boosting the market in general and “cannibalistic growth”, which comes at the cost of other segments. Spending for massively multiplayer online games and online PC games is moving toward tablets and smartphones, while social, casual and handheld console gaming have weakened.