“Candy Crush Goes Public On The Stock Market” Candy Crush averages about 93 million daily users, who play the game more than a billion times a day, according to the company. King reported annual revenue of $1.9 billion and a profit of about $568 million, despite offering games such as Candy Crush, Pet Rescue and Farm Heroes to players for free. But its growth has soared. Sales in 2012 were $164 million with a profit of just $8 million. King makes money by selling virtual items to a small fraction of its players who wish to enhance their playing experience. Despite its rapid gains, Kings dependence on Candy Crush has some market strategists questioning its long-term strategy. There are concerns that this could be a repeat of Zynga, which has been unable to the match the success of former hit Farmville. Since only a small group of players generate most of Kings revenue, a loss of even a small number of these players would materially affect Kings gross bookings, said financial data firm PrivCo in a recent report. Other red flags include slowing growth for Candy Crush, as well as the way King double counts its players, according to PrivCo, which has advised investors to pass on the stock. An individual playing Candy Crush on his cell phone while commuting to work and then later plays Candy Crush on his computer during their lunch break would be counted as two users, PrivCo said. If the person then played on a tablet during the same period, he would be counted as three users. Still, Kings profits are impressive and plenty of investors are hungry for a taste of what they view as a sweet IPO. The things we do, to make other folk rich!! :-) -Mayor Wright-
Posted on: Wed, 26 Mar 2014 13:50:41 +0000
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