Home Business Candy Crush Saga: King Digital Shares Fall After Weaker Profits

Candy Crush Saga: King Digital Shares Fall After Weaker Profits

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King Digital shares fell as much as over 14% in after hours trading after it warned of weaker profits.

Candy Crush maker said it expects fluctuations in foreign currency and a lack of new releases to hold back its earnings in the current quarter.

The big drop in King Digital (KING) shares came despite the release of first quarter sales figures that beat market expectations.

The company has been struggling to increase market share.King Digital Candy Crush Saga shares

King Digital’s revenue fell 6.1% to $569.5 million in the first three months of the year from a year ago, but that was higher than analysts’ forecasts of $563.4 million.

“We look toward the remainder of the year, we expect the mid-year period to be seasonally softer, returning to growth trends in the latter part of the year,” the company said in a statement on May 14.

The company is launching a new game this year, but that will not be released until the later half of the year.

King Digital said that falls in both gross bookings and revenue in the first quarter were largely due to lower sales from its Candy Crush Saga and other “more mature games” – a sign that players are moving on to other games.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

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