Supercell’s 2023 financial results are set to be unveiled this week. Ahead of the announcement, we’re republishing the below analysis on changes at the company following last year’s financials and CEO Ilkka Paananen’s appraisal of Supercell’s recent past and plans for the future. This article was originally published on December 18th, 2023.
The renowned mobile games developer, Supercell, has been facing a challenging situation.
In 2022, the Finnish company experienced a 6% year-over-year decrease in revenue, amounting to €1.77bn. Additionally, EBITDA fell by 14% Y/Y to €632m. It’s evident that Supercell has been on a continued decline, potentially supported by the pandemic boost witnessed by many game publishers in 2021.
Looking back at the company’s financials, it reported a revenue of €2.1 billion and €917 million in EBITDA in 2016, followed by a year-on-year decline. A significant boost was observed in 2021 with a revenue of €1.89 billion and €734 million EBITDA, before dropping back in 2022.
In comparison, industry reports from Newzoo and Data.ai indicate a decrease in player spending in the mobile games market. However, despite these challenges in the market, Supercell has not debuted a global launch since Brawl Stars in December 2018, signifying its struggle in adapting to the evolving mobile games landscape.
The next chapter
At the beginning of the year, Supercell CEO Ilkka Paananen published his annual blog post discussing the company’s status. Named “The next chapter of Supercell,” the piece provided an honest assessment of the company’s successes and failures, along with a manifesto for its future.
While its mission to “create great games” remains the same, there is a shift in approach at Supercell. Known for its small ‘cells’ of top talent, the company is now proposing larger teams for live ops, reflecting a different approach to its success.
The outlined key objectives include creating new great games and improving the first live game continually. Furthermore, Paananen acknowledged that Supercell doesn’t have all the answers to address its challenges, suggesting several changes to adapt to the new landscape:
- Improving and expanding its internal engine
- Exploring platforms beyond mobile
- Expanding live ops teams
- Investing in other companies
- Embracing remote work and junior employees
So, what steps has Supercell taken in 2023 to reverse its fortunes and regain its standing in the mobile gaming industry? While it has not launched a new global game, the company has been actively repositioning itself.
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