360° Coverage : Candy Crushed? Here's A Chart To Make You Think Twice About...

2 Updates
Candy Crushed? Here's A Chart To Make You Think Twice About King's Looming IPO
Photo Credit: Forbes Business

Candy Crushed? Here's A Chart To Make You Think Twice About King's Looming IPO

Mar 12 2014, 8:32pm CDT | by

Candy Crush is a maddeningly addictive game on which people are willing to spend a buck or more to lengthen their vividly-colored screen time. But potential investors to King.com’s forthcoming IPO...

Filed under: news


31 weeks ago

Candy Crushed? Here's A Chart To Make You Think Twice About King's Looming IPO

Mar 12 2014, 8:32pm CDT | by

Candy Crush is a maddeningly addictive game on which people are willing to spend a buck or more to lengthen their vividly-colored screen time. But potential investors to King.com’s forthcoming IPO should note it’s also a game that brought in roughly three quarters of King.com’s revenue in the fourth quarter, and that there may be a cost to relying so heavily on a digital golden goose, no matter how hooked its users or how much King values itself to be — a remarkable $7.6 billion .

The chart above shows that Candy Crush has recently been sliding in the ranks of downloaded apps on both Apple’s App Store (above) and Google Play (below). Having been firmly in the top 10 for much of July and all of August 2013, the game eventually dropped into the teens and even 20th position in December 2013, according to app analytics company App Annie.

That slide mirrors a fall in revenue for Candy Crush’s maker, King Digital Entertainment, and shows just how closely correlated the company’s finances are to one game. In the last three months of 2013, King’s sales slipped to $632 million from $648 million in the previous quarter, while net profit also fell to $269 million from $290 million.

King did not wish to comment for this story, but the company has been open about the investment risks in its SEC filing today, noting that “a small number of games currently generate a substantial majority of our revenue,” (though “one game” might have been more accurate). The company said that in the future it expects Candy Crush to represent a smaller percentage of gross bookings from mobile as it expands into other games:

“If the gross bookings of our top games, including Candy Crush Saga are lower than anticipated and we are unable to broaden our portfolio of games or increase gross bookings from those games, we will not be able to maintain or grow our revenue and our financial results could be adversely affected.”

King has been producing casual games for a decade and been profitable since 2005, so potential investors are of course also betting on the company’s clever strategies for sniffing out and promoting the next blockbuster hit that will dominate app rankings.

But history tells us even the most effective strategies which stretch the boundaries of exploitative game mechanics can’t guarantee future blockbusters that replicate what Candy Crush has achieved till now. Just ask Zynga, maker of the blockbuster social game Farmville, whose shares have fallen 40% since its December 2011 IPO. Zynga’s shares debuted at $11 but have been hovering around the $3-5 mark for almost two years.

Rovio, the maker of blockbuster mobile game Angry Birds, has chosen not to go public, though when I visited the company’s Espoo, Finland-based offices in June 2011, management then were tentatively excited about a future IPO. Rovio back then had just seen its annual revenue jump by 300% and it was dominating the top ten charts globally. Since then however, Angry Birds has fallen into the mid-30s in rankings according to App Annie.

“We don’t want to estimate ourselves in bubblelicious figures,” Rovio’s vice president Ville Heijari eloquently said then, adding that Rovio didn’t want to “rush” towards an IPO. That may have been wise in hindsight. Rovio has yet to release a game with the same impact of Angry Birds, though it’s had relative success in milking the game’s brand and characters with merchandising deals.

It’s worth noting that King may manage to counterbalance Candy Crush’s eventual disappearance from our screens with other, addictive games. Its other colorful offering, Farm Heroes, seems to have the most potential. According to the company’s filing it had racked up 20 million daily active users in February, up rapidly from 8 million in December 2013.

But it’s still no Candy Crush, which had 93 million users in December 2013.

Source: Forbes Business


7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by 30 per cent. ...
Source: Business Times Singapore   Full article at: Business Times Singapore


7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17 ...
Source: Business Times Singapore   Full article at: Business Times Singapore


Don't miss ...


<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.


blog comments powered by Disqus

Latest stories

Nigerian parliament approves $1 bn loan to fight Boko Haram
Lagos, Oct 23 (IANS) The Nigerian House of Representatives Wednesday approved President Goodluck Jonathan's request to borrow not more than one billion dollars to tackle the security challenges facing the country.
Kenya to train 30,000 health workers on Ebola
Nairobi, Oct 23 (IANS) Kenya has plans to train 30,000 health workers on Ebola screening, prevention, control and case management, the health ministry said Wednesday.
Germany pledges additional five mn euros to fight Ebola
Berlin, Oct 22 (IANS) Germany Wednesday said it would provide over five million euros ($6 million) in additional funds to promote Ebola research.
Indian-origin student named America's Top Young Scientist
Washington, Oct 22 (IANS) Sahil Doshi, a 14-year-old Indian-American student has won the 2014 Discovery Education 3M Young Scientist Challenge for his innovative, eco-friendly battery design that could help lower harmful greenhouse gases.

Latest from the Network

European Champions League standings
Paris, Oct 22 (IANS) Following are the European Champions League standings for Groups E to H after Tuesday's matches (tabulated under matches played, won, drawn, lost, goals for, against, points), according to Xinhua...
Read more on Sport Balla
Rogerio set to break Giggs world record
Rio de Janeiro, Oct 22 (IANS) Sao Paulo goalkeeper Rogerio Ceni is one victory away from earning his fourth Guinness World Record by eclipsing a mark held by Manchester United legend Ryan Giggs. The 41-year-old will...
Read more on Sport Balla
Ryan Reynolds can't keep his hands off Blake Lively
Ryan Reynolds was ''really sweet'' to Blake Lively at the Angel City Ball. The couple, who got married in September 2012, made their first red carpet appearance together in New York City on Monday night (10.20.14) since...
Read more on Celebrity Balla
Kris Jenner doesn't know who Bruce Jenner is dating
Kris Jenner has ''no idea'' whether Bruce Jenner is dating her best friend. The 58-year-old reality TV star, who split from the Olympic gold medallist last October after 23 years of marriage, claims she doesn't know if...
Read more on Celebrity Balla
When Rihanna dressed like 'Harry Potter'
New York, Oct 22 (IANS) Singer Rihanna was spotted here in a Harry Potter style costume. She wore the wizard-like get-up while heading for a business meal here Monday, reports mirror.co.uk. The 26-year-old combined a...
Read more on Celebrity Balla
Germany raises humanitarian aid to Iraq
Berlin, Oct 22 (IANS) Germany has pledged a further 20 million euros (about 25.5 million dollars) in humanitarian aid to Iraq, the foreign ministry said in a statement Tuesday. The additional funds are immediately...
Read more on Politics Balla
India calls on Israel, Palestine to resume peace process
United Nations, Oct 22 (IANS) India has called upon Israelis and Palestinians to resume the peace process as "dialogue remains the only viable option" to address the issues confronting the region. In a brief statement...
Read more on Politics Balla
Airstrikes help ground forces fight IS: Pentagon
Washington, Oct 22 (IANS) Kurdish forces are in control of the majority of the Syrian city of Kobane despite efforts by the Islamic State (IS) to take the town, a spokesperson for US defence department said Tuesday....
Read more on Politics Balla
Palestine, Israel urged at UN to halt unilateral initiatives
United Nations, Oct 22 (IANS) UN Secretary-General Ban Ki- moon Tuesday called on Palestine and Israel to overcome differences and halt unilateral initiatives that fuel mistrust, so as to pursue long-term stability in...
Read more on Politics Balla
China urges Israel to create conditions for peace
United Nations, Oct 22 (IANS) Chinese government has called on Israel to create necessary conditions for the resumption of peace talks with Palestine. At an open debate of the Security Council on the situation of the...
Read more on Politics Balla