Though it has been a good week for King following its purchase by Activision Blizzard, the firm’s financial report for Q3 is probably not as sweet as it might like.
The firm recorded $480m in revenue for the third quarter, a drop of $35m or seven per cent year-on-year. Meanwhile, gross bookings were to the tune of $502m – an eight per cent dip year-on-year.
King blames this decrease in gross bookings and revenue on the maturation of its flagship title, Candy Crush Saga – though the firm gives no exact figures as to how the money it is making from its mobile hit has decline. This is the second quarter of decline.
It’s not all bad news, however. King says its gross bookings from games other than Candy Crush Saga were $301m for the quarter, an increase of 14 per cent year-on-year.
Our third quarter 2015 gross bookings exceeded the high end of our guidance range, and for the third consecutive quarter Candy Crush Saga and Candy Crush Soda Saga ranked within the Top Five grossing games in the Apple App Store and Google Play Store in the US These results reflect our continued execution of our franchise strategy and the longevity of our brands,” said King CEO Riccardo Zacconi.
We are also pleased to have recently launched Blossom Blast Saga, our first game with a linker mechanic, and look forward to introducing this new game play to players around the globe.
We are excited about the transaction with Activision Blizzard. We believe the transaction will position us very well for the next phase of our company’s evolution and will bring clear benefits to our players and employees, while providing a return to our shareholders through the share price premium and the immediate liquidity it will provide to all shareholders upon completion.”