Candy Crush Soda Saga boosts King Digital’s Q4 revenue and profit
The quarterly revenue and profit of King Digital Entertainment, mobile game maker beat market estimates thanks to introduction of Candy Crush Soda Saga in fourth quarter.
The company announced to buy Seattle-based game developer Z2Live. Total consideration for the acquisition consists of $45 million in cash, and up to $105 million of additional cash linked to future events
The total revenue of King in Q4 is $546 million, which exceeded the predicted cent per share by 10 cents a share (57 cents compared to 47 cents). Its shares jumped 18% in extended trading yesterday. The company also witnessed an increase in new users.
This was a sigh of relief for investors as prior to the launch of the Soda sequel, the original Candy Crush was witnessing decline in their daily active users over previous quarters. However, all that changed with the introduction of the Soda game last quarter. King now notes an increase year–on–year of 20%.
Not only did more people are playing the games, but same people are also spending more per person. The monthly average bookings per paying user in Q4 rose to $23.42 which is a 35% increase year-on-year.
Total gross bookings, an indicator of future revenue, increased 8% to $586 million in the fourth quarter that ended on 31 December.
The company also announced a $300 million, or $0.94 per share, special dividend payable to shareholders on March 24.
Now, King is undertaking a share repurchase plan for which it will receive approval from shareholders on January 29 for a $150 million program. Under this program, King repurchased $10 million worth of stock between January 29, 2015 and February 11.
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