HELSINKI Feb 15 Finland's Supercell, the maker
of hit mobile game Clash of Clans, reported on Wednesday core
profit rose 8 percent last year, helped by the launch of a new
game and despite the challenge from Nintendo Co's smash
hit Pokemon GO.
Supercell, majority owned by China's Tencent Holdings Ltd
, said earnings before interest, tax, depreciation, and
amortisation rose to 917 million euros ($967 million) last year
from 848 million in 2015.
With largely flat revenue of 2.1 billion euros, the profit
improvement was partly due to lower spending on advertising and
the successful launch of its latest game, Clash Royale, it said.
"Despite tighter competition, this was the best year so far
in financial terms. Clash Royale was a huge hit," Chief
Executive Ilkka Paananen told reporters.
Clash of Clans, a war strategy game in which players build
fortresses, form clans with other players and battle it out in a
Medieval-style fantasy world, has remained on the list of
top-earning applications since its launch in 2012.
In 2016 it was ranked No. 2 after Mixi Inc's
Monster Strike, according to research company App Annie. Clash
Royale was No. 5.
Augmented-reality Pokemon GO, which has players walking
around real life neighbourhoods to catch and train Pokemon, has
the biggest number of active users, but in revenue terms it fell
behind Clash of Clans.
Supercell, also creator of Boom Beach and Hay Day, banks on
a handful of games, a strategy that has helped it avoid the
problems faced by the likes of rival Rovio Entertainment, which
has failed to create a new hit game since its 2009 launch of
"At the moment, we are not taking new games into beta tests,
perhaps later in the year," Paananen said.
($1 = 0.9479 euros)
(Reporting by Tuomas Forsell, writing by Jussi Rosendahl;
editing by Susan Thomas)