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Will Candy Crush making firm King sustain post $500 mln IPO?

February 19, 2014

ANI



Washington, Feb. 19 (ANI): King, the company behind the addictive Candy Crush Saga, is filing a 500 million dollars initial public offering with the US Securities and Exchange Commission.

But the question is can the hugely profitable but fickle new smartphone-game be sustained?

According to the Verge, the game has a vast audience of 128 million daily active users and over 1.2 billion games being played every day, but Candy Crush Saga accounts for 93 million of those daily users and 1.085 billion of those games.

But it's a one-game company, and that one game might be losing players rather quickly.

The company, having been in operation since 2003, believes it has a 'repeatable and scalable game development process' that will keep it growing for years to come, the report said.

According to the report, 2013 was the real breakout year for King Digital Entertainment in financial terms, as the company's profits exploded to 568 dollars million.

Some analysts have questioned whether King will be able to maintain its breakneck pace of growth, particularly given the difficulty of some other games makers in maintaining success, the report said.

Zynga, the creator of 'Farmville', has seen its share price fall halve since its initial public offering in late 2011.

King's revenues dropped between the third and fourth quarters of the year, with profits falling from 230 dollars million to 159 million dollars.

Whether or not it will be able to sustain the momentum of its flagship game is the key question for King going forward.

The company has applied to list its shares on the New York Stock Exchange under the symbol of 'KING', the report added. (ANI)


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Source: Asian News International


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