King is down about 10% in Friday’s early trading after reporting second-quarter revenue declines of 18% and earnings of 49 cents per share.
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King Digital shares have decreased 1 percent since the beginning of the year. While Candy Crush Saga ranks in the top-10 games for the Apple (AAPL) App Store and Google (GOOG, GOOGL) Play Store, interest in it is dwindling, as will King’s revenues since about 40% of its bookings come from Candy Crush.
The firm stated on Thursday it postponed its entry right into a gaming phase referred to as “mid-core” to 2016.
“Today they’re setting expectations for the balance of the year and the truth is, it’s not exciting”, Wedbush Securities analyst Michael Pachter told Reuters. The combination of wide game appeal, accessibility, and its multi-platform capabilities enables to attract a broad user base, foster viral growth, and create a compelling, fun and social experience.The Company operates in developing and monetizing casual online and mobile games.
Also Glu Mobile, whose hits have included “Kim Kardashian: Hollywood”, last week warned sales for the second half could miss forecasts as it launches new titles including a “Mission Impossible” and James Bond-themed game. Excluding the strong dollar impact, grossing bookings would have fallen 6%.
Brokerage firm Barclays Maintains its rating on King Digital Enter(NYSE:KING).
FactSet shows a consensus estimate for $515 million for new orders, the comparable Street metric. Monthly unique payers fell 27% to 7.59 million from 10.42 million in Q2 2014.
King Digital Entertainment plc (NYSE:KING): The mean short term price target for King Digital Entertainment plc (NYSE:KING) has been established at $19 per share.
Key stats: The company expects to see third quarter revenues between $460 and $485 million. However, the number of users paying for features within the games at least once a month fell 27pc on a year ago to 7.589 million. However, analysts were expecting earnings of $0.43 per share on revenue of $490.03 million.
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Net income fell to $119.3 million, or 38 cents per share, in the second quarter from $165.4 million, or 52 cents per share, a year earlier. Revenue fell 17.5% to US$489.5mil (RM1.9bil). Equities analysts anticipate that King Digital Entertainment PLC will post $1.93 earnings per share for the current fiscal year.
