Why King Digital Entertainment PLC (KING) Stock Is Getting Crushed

King Digital Entertainment PLC (NYSE:KING), the maker of Candy Crush Saga, saw its stock drop on Friday.

king-digital-entertainment-plc-candy-crush-kingKing Digital’s Q1 earnings report for 2015 saw its net profit rise from $127 million in Q1 2014 to $164 million this year. However, its revenue dropped to $570 million from $607 million the same time last year, reports The Wall Street Journal.

King Digital also reported gross bookings — a term for in-game purchases that haven’t become revenue yet — of  $605 million for Q1 2015. This is slightly above what the company expected. The company’s guidance for gross bookings in the second quarter of 2015 is set for a fall to between $490 million to $520 million,

WSJ notes.

King Digital also didn’t offer a special dividend for Q1 2015. This is a change compared to previous quarters. The company did offer a share-repurchase plan and bought back $111 million worth of its stock, reports Business Insider.

KING shares were down 1% as of Noon Friday.

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