The fears came true – now crushed King on the stock exchange – Business Week

The fears came true – now crushed King on the stock exchange – Business Week

Investors’ worst fears came true in the Swedish Kings quarterly report – and the stock fell like a stone on the New York Stock Exchange.

The Swedish based game developer King Digital fell heavily in the United States after trade after the company opened the second quarter’s account books during Tuesday evening.

King Digital floated in March at a price of 22:50 dollars, but dropped 16 percent this first trading day. In Tuesday after trading after the quarterly report released, plummeted share 21 percent of the time low 14:40 dollars.

sales rose admittedly to $ 594 million during the quarter, from $ 456 million in the corresponding period last year, but the increase was not large enough to reach analysts’ expectations. In the context of the report was also reduced full-year forecasts.

One worry for analysts have issued since the IPO in March was the Company’s ability to develop other games in addition to the flagship Candy Crush Saga. During the quarter, the Candy Crush for almost 60 percent of gross sales.

“Candy Crush performed worse than expected in the quarter,” commented King Digital’s CEO Riccardo Zacconi, and further pointed out that the newer games such as Farm Heroes and Bubble Witch 2 failed to attract enough players to fill the hole, reports the Financial Times.

The company has taken steps to expand gaming portfolio and thus reduce dependence on Candy Crush: previously in August bought Kingston Digital, the Singapore-based game developer Nonstop Games, while the number of employees increased from 808 at the end of the first quarter to 971 in June.

So far no action has generated the desired results, which, among other things, given Deutsche Bank the following quarterly report lower recommendation for shares to keep from previous purchases. Banks will also significantly in the target price from $ 27 to $ 12.

“Candy Crush exceeded our estimates, but the new game – despite steady presence in the charts – missed. Outlook for new game titles are now much weaker, because we lower the target price, “writes the bank in the analysis.