King Digital Entertainment has lowered its forecast for 2014 after its second-quarter results fell below expectations.
Bloomberg reported the Candy Crush maker slumped 22 percent to $14.20 at 5:43 p.m. yesterday in New York.
The company said it expected to make $2.25bn to $2.35bn from items purchased within its games, while its previous estimate was $2.55bn to $2.65bn.
The Saga continues…?
Although it’s still the second-highest grossing game on iPhone in the US, King’s flagship Candy Crush Saga is no longer a top 10 download.
Although eventual declines in downloads of mobile games are common, CEO Riccardo Zacconi admitted the company’s “non-Candy Crush games did not grow as much as we had expected and, as a result, did not offset the decline in Candy Crush.”
King’s financial officer said it had plans to launch a sister title to give “more longevity” to the Candy Crush brand.
Seen as something of a London success story, King was widely rumoured to be one of the next tech companies to float on the London Stock Exchange through the newly created High Growth Segment.
However, the firm eventually opted to float in New York in March.
The company also moved its tax base to Ireland ahead of the IPO, in a way that some believed could help it avoid the British taxman.
Tech City News markets columnist Chris Woodcock predicted back in February that the most best route for King might be to position itself as a glorified distributor, outsourcing the actual making of games and focusing on how to make them go viral.