Candy Crush dev's profits are up, but shares are falling fast

King reports profit of $127 million for the first quarter, as shares tumble more than 15 percent.

Candy Crush developer King today reported earnings for its first quarter ended March 31, showing big gains for profit, player engagement, and monetization. But it wasn't all good news for the social game studio. Wall Street isn't thrilled, as the company's shares are currently down more than 15 percent.

For the quarter, King posted a profit of $127 million, an increase of $75 million (142 percent) year-over-year. Daily active users rose to 143 million for the quarter, up by 107 million (297 percent) compared to last year. Compared to last quarter, daily active users are up 19 million. Monthly active users are on the rise as well, jumping 249 percent to 481 million year-over-year and 18 percent compared to last quarter.

Not only are player numbers on the rise, but the amount of money people are spending is also going up. Monthly Unique Payers in the first quarter were 11.9 million, an increase of 190 percent compared to last year. However, this is a decrease from last quarter, when Monthly Unique Payers stood at 12.2 million. Monthly Gross Average Bookings per Paying User rose to $18.02 in the quarter, up 13 percent ($2.10) from last year and up 4 percent from last quarter. Overall, King generated record quarterly bookings of $480 million.

"We are pleased with our first quarter 2014 results and are executing on our plan to build a strong portfolio of games," King CEO Riccardo Zacconi said in a statement.

Three King titles were in the top 10 grossing games for iTunes, Google Play, and Facebook during the quarter, though these were not specified. King also pointed out that it's not just Candy Crush Saga that's boosting the company's bottom line. The company says games other than Candy Crush Saga rose by 33 percent in terms of revenue during the quarter.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch
Got a news tip or want to contact us directly? Email news@gamespot.com

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

Discussion

23 comments
Thanatos2k
Thanatos2k

They know it's going to peak this year, and next year they'll be on the slide to doom like Zynga.  Wall Street sees it coming too.

DrKill09
DrKill09

I wouldn't even know Candy Crush existed if it weren't for the developers trying to copyright the word "candy"

sebbysebbseb
sebbysebbseb

Everyone at my work was hooked on CandyCrush at one stage. Nowadays no one is playing it. Even the Facebook feed has less to none CandyCrush activity.  This, this is for the better.

nurnberg
nurnberg

I find Candy Crush so stupid.  It is fun for about 25 levels or so.  Then it becomes extremely hard and the point of the game from now on is begging for pay-2-win items.  Of course you can spend real money too.  I wish there was a good puzzle game like this but without micro-transactions and that is not f2p.

PortableXombie
PortableXombie

Let me tell you a story of how the second video game crash came about....

spacecadet25
spacecadet25

Interesting that a company that is frowned upon as a possible one-hit wonder does not mention by name it's supposedly other hot selling games in its financial report.  Yeah, no wonder Wall Street is not impressed.  Wall Street reads your SEC filings and press releases, not your stupid facebook page or your Twitter feeds, they aren't going to look up those games.

ACMC85
ACMC85

I don't get who is playing this. My siblings who range from occasionally playing a game to play as a hobby have given up on this game. Even the one who is obsessive and likes wasting money has given up. I never played the game, but from my close family circle and friends circle. Most aren't vocal about playing, even if they do play. I don't get why this company went public either. They were making tons of money and could have retired, not needing to waste time on an poor IPO for more quick cash.

jer_1
jer_1

Nice bubble you have there...going to pop soon. There never was substance to this company.

bouchart
bouchart

It's not good to be the King.  Shares were Candy Crushed!

Hurvl
Hurvl

Lol, Wall Street still isn't persuaded despite all these impressive numbers. Oh well, King can sink or swim, they've got nothing that interests me.

Raeldor
Raeldor

Probably down 15% because of the ridiculous valuations so called 'analysts' give these companies because of future expectations that are based on nothing but speculation.

arrow2thekneeXD
arrow2thekneeXD

But Micro-transactions and mobile games are the future...

DrKill09
DrKill09

@PortableXombie  I thought you were gonna say


"Now, this is a story all about how

My life got flipped-turned upside down
And I'd like to take a minute
Just sit right there

I'll tell you how I became the prince of a town called Bel Air"

hystavito
hystavito

@PortableXombie  Mobile games are lower risk though, as in lower cost so failures don't have as big an impact.

DrKill09
DrKill09

@jer_1  There was more substance to the shortly lived GameCock.

spacecadet25
spacecadet25

@Hurvl They didn't get specific in their report about what else they can do.  Investments are in large part based on projected future value, not what your one trick pony that won't live that much longer is worth.