Tag: hay day

The popularity of mobile games double revenues at Supercell

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.

Mobile Games - Doubled RevenueThese 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.

Softbank invests in Finnish mobile games developer

Softbank continues showing strong interest in mobile games

Softbank, a Japanese telecommunications corporation, has invested some $1.53 billion in a mobile games developer based in Finland. Per the investment, Softbank now owns a 51% stake in Supercell, developer of popular games like Clash of Clans and Hay Day. Despite the success of its games, Supercell is still considered a small development studio, but the developer is growing quickly and has established a formidable presence in the mobile games space.

Supercell boasts of strong revenue in games sector

Supercell has surpassed Zynga in terms of market value. The developer is currently valued at $3 billion and the developer’s games produce estimated daily revenue of over $2.4 million. The majority of this revenue comes from in-game purchases on virtual items and digital currencies. The financial clout that Supercell represents demonstrates the economic promise that can be found in the mobile games sector. As mobile games continue to grow in popularity, large companies like Softbank are looking to establish a lead in the sector.

Mobile Gaming - Softbank takes over Finish mobile games developerGlobal game industry revenue expected to hit $86 billion by 2016

Market research firm Newzoo predicts that the global revenue produced by the game industry as a whole will reach $86.1 billion by 2016. The firm expects the mobile games sector to grow quickly over that time, accounting for approximately 30% of global gaming revenue. Mobile games currently represent 17% of the revenue produced within the game industry. Consumers have shown that they are willing to spend money on mobile games despite the fact that the majority of these games are free to play.

Softbank aims for the global stage with mobile games

Approximately 20% of the investment coming from Softbank will be funneled through the company’s own mobile games studio, GungHo Online Entertainment. Softbank has already established a formidable presence in the Asian game market through its subsidiaries, but the company is not turning its interests to the global stage. Softbank is well positioned to compete with other large companies, such as Electronic Arts, that have begun entering into the mobile games sector.