Cutting Back On The Candy

Shares of King Digital, the maker of mobile game Candy Crush, fell by as much as 14% following profit warning.

17:28 18 May 2015

King Digital has warned of weaker profits due to fluctuations in foreign currency and lack of new releases. Following the announcement, the company’s share fell by as much as 14per cent. 

 

King Digital’s revenue fell by 6.1per cent to $569.5million in the first three months of 2015. Its gross booking for period that covers April to June is expected to be about $490m and $520m - below expectations.

 

On Thursday, the company released a statement that reads: "We look toward the remainder of the year, we expect the mid-year period to be seasonally softer, returning to growth trends in the latter part of the year,"

 

King Digital, which has been struggling to increase its market share, is due to release a new game later this year.