King's revenue falls

The creators of the Candy Crush Saga series have reported for the 3rd quarter of 2015. The company’s revenue is falling.

For the company, the 3rd quarter of 2015 ended on September 30. Revenue for this period amounted to $480 million, which is 2% less than in the previous quarter and 7% less than in the previous year.

The company’s profit also decreased. It amounted to $143 million, which is 1% less than at the end of the 3rd quarter of 2014 and 13% less than in the previous quarter.

King ended the quarter with $920 million in cash and cash equivalents, which is $134 million more than in the 2nd quarter of 2015, but less than in the 4th quarter of 2014. The company then ended the quarter with $964 million in cash and cash equivalents.

The figures show that King’s main problem – the burnout of the Candy Crush franchise audience – remains relevant. The company’s revenue from games in addition to the title series increased by 14% compared to last year. However, this does not compensate for the falling revenue from the Candy Crush series.

The user base is also declining. The total MAU of the company in the 3rd quarter of 2015 amounted to 474 million, which is 5% less than in the 2nd quarter and 4% less than in the same period in 2014. DAU decreased by 6% compared to the previous quarter and by 3% year-on-year.

There are fewer users, but they pay more. The number of unique paying players in the 3rd quarter amounted to 6.8 million. The average revenue per paying user increased by $1.19 compared to the previous quarter and reached $24.45. According to King, this means that users have become more likely to spend money in other games besides the Candy Crush franchise.

Recall that recently it became known that Activision Blizzard is buying the authors of Candy Crush Saga. King will be acquired for $5.9 billion.

A source: http://investor.king.com