King Digital Entertainment sees 28% Fall in Net Profit

According to reports, King Digital Entertainment has seen a 28% fall in net profit in the recent quarter. Its net profit was affected as a result of continued decline in revenue from its three-year-old "Candy Crush Saga" game.

As per reports, the company posted net profit of $119 million in the second quarter. It fell from $165 million or 52 cents a share in the same period a year ago. Reports stated that revenue declined 18% to $490 million.

The company said that the lower profit coupled with the declining performance of its hit game led to the loss. But it said that it will continue investing in it.

According to Tero Kuittinen, managing director at Magid Associates, “Nothing has really lessened the dependence on ‘Candy Crush’ substantially. That dependence may actually be set to soar as important B-string games are fading fast”.

Chief Executive Riccardo Zacconi said Candy Crush Saga will still exist and the company believes in continuous innovation and will keep on adding levels and new game play elements.

When the ‘Candy Crush Saga’ game was launched on cellphones and tablets in 2012, it took the company to a different position as the game became very popular. The game generated approximately 40% of King Digital's gross bookings in the second quarter, and remained on the top of charts.

The company is waiting to expand its revenue base, with new products like ‘Alphabetty Saga’. Last year, King Digital’s dependence on the ‘Candy Crush’ franchise was strengthened when the company launched ‘Candy Crush Soda’, ‘Candy Crush Saga’ game’s derivative.