King Digital leans less on its biggest game, but profits drop from $159 million in the fourth quarter of 2013 to $127 million in the first three months of 2014
Candy Crush Saga maker King Digital has an answer for critics who’ve called the company a one-hit wonder.
In the first quarter of 2014, King’s revenue stream was more diverse than ever, with 67% of its earnings coming from Candy Crush. That’s down from 78% in the last quarter of 2013, as King pushes new games like Farm Heroes Saga. King now has three of the 10 top-grossing games in both the iOS App Store and the Google Play Store, with Pet Rescue Saga rounding out King’s list of hits.
King also notched record revenues of $607 million, for a year-over-year increase of 195%.
It wasn’t all good news though. Profits are down sequentially, from $159 million in the final quarter of 2013 to $127 million in the first three months of the year. King said the lower profits are due to an increased headcount and the launch of Farm Heroes Saga, according to Business Insider.
The number of “unique payers”–that is, people paying for in-app power-ups–dropped to 11.9 million last quarter, down from 12.2 million in Q4 2013, and down from a peak of 13 million in Q3 2013.
That may explain why King’s stock is taking a dive today. At the time of publication, it was currently trading at $16.61 per share, compared to its IPO pricing of $22.50 per share. The company’s March IPO flopped badly, with shares falling 16% on the day of release.