Boston, MA 08/14/2014 (wallstreetpr) – King Digital Entertainment PLC (NYSE:KING), the creator of popular and one of the most-played video games, Candy Crush, sunk the most on August 13, 2014, ever since its IPO, after it reported its Q2 2014 sales, which trailed the estimates of analysts. King, also in the meanwhile, slashed its full year guidance for the present year.
King’s Biggest Sink Since March IPO
The company dropped 23% to close at $13.99 in New York Stock Exchange, which is reported to be its deepest one since it went for Initial Public Offer in March. King, it must be noted, is struggling for generation of revenues from its present titles.
Assortment of Games Needed
King Digital Entertainment PLC (NYSE:KING), at present, is working on the factor of developing much assorted games because of the decreasing number of Candy Crush players. The company, however, has been trying to balance the decline of Candy Crush players with the introduction of new titles like Pyramid Solitaire Saga.
Statement from the CEO
The Chief Executive Officer of King Digital Entertainment PLC (NYSE:KING), Riccardo Zacconi said in the conference call that the number of players of Candy Crush has dropped down more than the expectation. He added that, in the meanwhile, the number of players of non-Candy Crush games has not grown according to the expectation; which means that loss from Candy Crush has not yet been offset.
He unveiled that the adjusted revenue of company increased 29% to $593.5 million in comparison to 2013, but the analysts’ projection of $605.7 million has been missed considerably, sending the shares in the downward trend.
Relying on a Single Title can Plunge Sales
It is worth noticing that relying too much on a single source can indeed plunge sales, just like it is observed in case of Zynga Inc (NASDAQ:ZNGA), which relied too much on Farmville and witnessed declining sales and revenue. Zynga, too, is adding new titles to its menu in the backdrop of slashing revenues. In order to create new titles, Zynga has also signed agreements with Warner Bros. Entertainment Inc., National Football League and Tiger Woods.
