Candy Crush Saga: King Digital Revises Figures Amid Mobile App Earnings Decline
King Digital Entertainment PLC, the maker of the "Candy Crush" video game, has reduced its forecast for this year.
Their second quarter revenue was lower than expected based on their report issued last Tuesday, according to Investor's Business Daily.
Gamers who used to love the "Candy Crush Saga" game are now spending less money on it. With the decline in sales, shares continued to fall.
The company went public only last March. It was said that they had reduced their forecast from an estimated $2.65 billion down to about $2.25 billion to $2.35 billion because they have seen the decline in movement late in the second quarter and they have decided to change their forward outlook. That was announced during an interview with King Digital's Chief Executive Officer Riccardo Zacconi.
Investors are now worried that should King Digital fail to deliver a set of long-lasting and consistent hits, they might see "Candy Crush Saga" in a situation similar to Rovio Corp., the maker of "Angry Birds," and Zynga Inc. makers of "Farmville," both of which are scrambling to keep players.
The second quarter gross bookings of the company was $611 million, which was up by 27 percent compared to the same period last year, but this is lower than the company's gross bookings during the first quarter, which amounted to $641.1 million, according to Reuters.
Despite the decline, the company is still hopeful. Hope Cochran, the company's Chief Financial Officer, said that they expected the decline but the game still has a very strong and long tail. She said that a sister title to the addicting game would be launched in the last quarter of this year and they are very optimistic that this would provide "Candy Crush" with longevity.
The company is still waiting to see if the performance of "Bubble Witch 2 Saga" and "Farm Heroes Saga" will be able to offset the losses the company incurred with "Candy Crush Saga." The puzzle game accounts for 60 percent of the gross bookings for the second quarter.
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