February 14, 2018 / 10:02 AM / 9 days ago

Gaming firm Supercell 2017 profit drops as Clash of Clans sales cool

HELSINKI, Feb 14 (Reuters) - Mobile game maker Supercell said on Wednesday its core profit fell 20.5 percent last year, due to falling revenue for its five-year old hit game Clash of Clans.

The Helsinki-based firm, majority owned by China’s Tencent Holdings Ltd, said earnings before interest, tax, depreciation, and amortisation (EBITDA) fell to 729 million euros ($900.97 million) last year from 917 million in 2016.

Company revenue dropped by 14 percent to 1.8 billion euros from 2.1 bln in 2016.

Chief Executive Ilkka Paananen told a news conference the amount of players in the West was not growing as fast as in the past. “We also did not release new games last year,” he said.

Supercell has a catalogue of four games, which have around 100 million daily active players in total. It derives a significant amount of its revenue from in-game purchases.

Research company App Annie ranked Supercell the world’s fifth-biggest mobile game publisher last year, down from the No. 2 spot in 2016, based on revenue collected on Apple’s iOS and Google Play stores.

$1 = 0.8091 euros Reporting by Tuomas Forsell

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