King Digital Shares Tumble Following Q2 Results

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Shares of
King Digital Entertainment PLC
KING
dropped around 8 percent in after-hours trading after the company reported results for the second quarter. The Dublin, Ireland-based company reported a quarterly profit of $119.3 million, or $0.38 per share, versus a year-ago profit of $165.4 million, or $0.52 per share. Excluding one-time items, the company's earnings came in at $0.49 per share. Its revenue declined 17.5 percent year-over-year to $489.5 million. However, analysts were expecting earnings of $0.43 per share on revenue of $490.03 million. The average estimate among 22 Estimize users was for earnings of $0.46 per share and revenue of $525.49 million. Its gross bookings declined 13 percent year-over-year to $529 million in the second quarter. Adjusted EBITDA fell 16 percent year-over-year to $207 million. MAUs rose 3 percent year-over-year to 501 million in the second quarter, while DAUs gained 3 percent to 142 million. At June 30, 2015, the company had $786 million in cash and cash equivalents. King CEO Riccardo Zacconi said, "Our second quarter 2015 gross bookings exceeded the high end of our guidance range and for the third consecutive quarter, Candy Crush Saga, Candy Crush Soda Saga and Farm Heroes Saga ranked within the top 10 grossing games in the Apple App Store and Google Play Store in the U.S. These results reflect our execution on delivering new content and features in our franchise games and demonstrate the continued benefits from operating global mobile game franchises and the strength of their brands." For the current quarter, the company expects gross bookings of $460 million to $485 million. King Digital shares fell 7.96 percent to $13.99 in the after-hours trading session.
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Posted In: EarningsNewsGuidanceprofit
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