King Digital Entertainment Beats Q3 Revenue Expectations
King Digital Entertainment plc (NYSE: KING) reported financial results Thursday for the third quarter ended September 30, 2014. Revenue came in at $514.4 million, above estimates of $495 million and below the $621.2 million reported for the same period in 2013.
Diluted EPS was $0.45, beating estimates of $0.37 and the $0.71 reported for the year-ago period.
The company press release noted that non-"Candy Crush" titles generated $264 million, or 49 percent of total gross bookings in third quarter 2014, an increase of 167 percent year-over-year and up from 15 percent of gross bookings in third quarter 2013.
The company reported gross bookings of $543.9 million for the third quarter, below the $648.2 million reported in the year-ago period.
Based on recent results and insights into the fourth quarter of the year, the company expected gross bookings of $525 million to $550 million in fourth quarter 2014.
"With the launch of two new mobile games during the third quarter as well as the Facebook version of Candy Crush Soda Saga last month, we are continuing to execute on our strategy to develop a portfolio of games for our massive network of players," said King CEO, Riccardo Zacconi. "We have a consistent track record of developing successive hit games and as a result, have increased our non-Candy Crush Saga gross bookings to $264 million in third quarter 2014. If annualized, this represents more than a $1 billion run rate, and makes our non-Candy Crush Saga business larger than most every other mobile gaming company. In addition, the board’s authorization of a $150 million share repurchase program underscores our confidence in the strength of our company."
King Digital Entertainment traded at $13.76 in the after-hours session, up 4.32 percent.
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