One of the world’s hottest gaming companies, Finnish startup Supercell, is reportedly generating $1 million in gross revenue a day from just Hay Day and Clash of Clans, the company’s only two active iOS games, according to recent reports from PandoDaily and The Next Web.
No more than three months ago, Supercell told the New York Times in October 2012 that it saw sales in upward of $500,000 a day and $15 million in gross revenue a month, with only two games in its stable. PandoDaily later reported in November 2012 $750,000 in gross revenue. Minus Apple’s standard 30 percent cut of transactions from the Apple App Store, Supercell would be currently pulling in $700,000 a day. The revenue is also nearly split evenly between iPad and iPhone. Costs to run the company each day are said to be as low as $60,000, says PandoDaily.
“It’s weird for us, even internally, seeing all this speculation about how much money we’re making per day,” Supercell CEO Ilkka Paananen told PandoDaily.
November data from App store analytics company App Annie showed Supercell in first place in terms of monthly iOS revenue, topping big publishers such as Electronic Arts, GREE and Rovio. To put it into perspective, EA has 969 iOS apps in its portfolio compared to Supercell’s two. Clash of Clans and Hay Day nabbed the No. 1 and No. 2 spots (read our reviews for both titles here and here), respectively, on App Annie’s top iOS games by monthly revenue chart. In app tracking company Distimo’s 2012 year in review report, the company put together a top 10 chart of the highest grossing cross-platform publishers, with Supercell as the single app store exception. Distimo’s analytics product ApplQ showed us in Sept. 2012 that Clash of Clans was earning as much as $103,763 a day in U.S.
Apple confirmed the Helsinki-based developer’s success on Monday, stating that Supercell, although clumped together with developer Backflip Studios of DragonVale fame, pulled in $100 million in 2012.
Supercell isn’t without fault. The Finish developer axed three games including its first title Gunshine, a beta release of Battle Buddies, and an unannounced combat strategy game that was pulled in its early stage of development, says PandoDaily.
It’s also important to note that the gaming industry is a hit-driven business. OMGPOP’s Pictionary-like drawing game Draw Something bled users shortly after getting acquired by Zynga. The same fate could be dealt to Hay Day, which released in June 2012, and Clash of Clans, which released in July 2012.
The 70-person social gaming startup is known for their “tablet first” approach, which differentiates the Finnish developer from competitors such as Zynga, EA and GREE. Supercell makes money through in-app purchases from casual farm game Hay Day and village-building game Clash of Clans. Both titles have been at the top on the top grossing iOS apps charts for months. According to our traffic tracking service app data, Clash of Clans is currently the No. 1 grossing app for both iPhone and iPad, while Hay Day is the No. 2 grossing app on iPad and No. 5 on iPhone.
Finish developers in general are killing it in mobile gaming right now. Supercell is joined by Angry Birds developer Rovio, with Angry Birds Star Wars performing very well, and Oulu, Finland-based Fingersoft, with its hit title Hill Climb Racing, and Grey Area’s location-based MMORPG Shadow Cities.
Supercell, which was founded in 2010, has raised $15 million to date, $12 million of which from Accel Partners, with other backers including London Venture Partners, Initial Capital, Lifeline Ventures and Cerval Investments. According to PandoDaily, Supercell is the fastest growing company in terms of revenue that Accel Partners has ever seen. Keep in mind that this is a venture capital firm that has invested in the likes of Groupon, Spotify and Facebook. The company was rumored by PandoDaily to be valued at $600 million, with possible acquisition suitors like EA or Zynga.
In 2013, Supercell general manager for North America Greg Harper told The Next Web that the company plans to continue growing and supporting its existing titles and launch a few more games.