King spends $129 million on sales and marketing per quarter
Yesterday, King published the results of the first quarter of 2014. According to the data, it is clearly visible what exactly those who want to achieve comparable box office results should prepare for.
So, the company's revenue for the first three months of 2014 amounted to $ 606.7 million (a year ago, during the same period, the company earned $205.9 million).
It is necessary to deduct from this amount:
- $195.9 million in production and service costs;
- $46.7 million for research and development;
- $129 million for sales and marketing;
- $73.3 million for general and administrative expenses;
- Taxes gobbled up another $34 million.
As a result, the company earned $127.1 million (a year ago, revenue was $52.6 million).
This is all without taking into account the results in terms of the company's shares.
It's funny, but the company's financial results for the 1st quarter of 2014 were worse than those for the 4th quarter of 2013. Then the company's revenue amounted to $159.2 million.
The general trend is perfectly visible on the chart just below:
As you can see, the company's revenue has been falling for the second quarter in a row. So it is not surprising that almost immediately after the publication of the report, the shares seriously lost in value. If on May 6 they gave $19 for one share, then on the morning of May 8 it was only $16.2.
In terms of other indicators, the company is doing more than well.
- DAU of the company's games – 143 million;
- MAU of the company's games – 481 million;
On the other hand, there has been a serious decline in interest in Candy Crush Saga. Now the game is responsible for only 67% of the company's revenue, last quarter it accounted for 78% of revenue. Such a serious decline has also affected the total number of payers. Their number dropped by 12%. As a result, MUPs (the number of unique monthly payers) for the last quarter amounted to 11.8 million. This, to put it mildly, is also not bad, but the question remains whether King will have time to transfer all its "candy" traffic to other products before Candy Crush falls.
