King, the maker of popular mobile games like Candy Crush Saga, reported earnings for last quarter on Tuesday.
Earnings were right in line with expectations, but it was a miss on revenue.
Here’s the score:
EPS: $0.59 vs. $0.59 expected
Revenue: $593.5 million vs. $606 million expected
The stock is crashing. It was down at least 20% after hours.
King also announced a $150 million one-time dividend for the company’s top directors, executives, and investors.
King games had 138 million daily active users and 485 million monthly active users last quarter.
Because of last quarter’s lower-than-expected revenue, King is lowering its guidance for the rest of the year. It expects gross bookings to be $500 million to $525 for the quarter ending September 30. It expects gross bookings for the fiscal year ending December 31 to be $2.25 billion to $2.35 billion.
Mobile gaming companies like King and Zynga are under intense pressure to crank out insanely popular games. Usage of games like Candy Crush and Farmville tend to fall off over time, so these companies are constantly looking to create a new hit. Zynga has had trouble doing that over the years. King may be in the same boat soon.
King’s strategy for now seems to be making sequels to popular franchises like Candy Crush Saga and Bubble Witch Saga.
King also announced Tuesday that it bought Nonstop Games, a game developer in Singapore, in a $90 million deal.
Read more here.
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