BENGALURU: King Digital Entertainment plc (King DE) reported a 22 per cent rise in gross non Co Candy Crush Saga bookings to US$ 324 million (55 per cent of total gross bookings) for the quarter ended 31 December, 2014 (Q4-201, current quarter) as compared to the US$ 264 million in the previous quarter (Q3-2014) and 136.5 per cent more than the US$ 137 million (22 per cent of total gross bookings) reported for the corresponding year ago quarter (Q4-2013). Three King games were top 10 grossing games on Apple App Store (US) and four were top 10 grossing games on Google Play Store (US) for Q4-2014 says the company.
Total bookings increased 7.7 per cent in the current quarter to US$ 586 million from US$ 544 million in Q3-2014, but were 7.3 per cent lower than the US$ 632 million in Q4-2013.
For FY-2014, gross bookings increased 20.3 per cent to US$ 2282.4 million from US$ 1979.8 million in FY-2013.
Revenue in Q4-2014 was up 6.3 per cent to US$ 546.62 million from the US$ 514.35 million in the immediate trailing quarter, but was 9.3 per cent less than the US$ 601.72 million in the corresponding quarter of last year. Revenue in FY-2014 at US$ 2260.24 million was 20 per cent more than the US$ 1884.30 million in the previous year.
Net profit after tax (PAT) for the current quarter at US$ 140.62 million was 0.7 per cent lower than the US$ 141.67 million in Q3-2014 and 11.7 per cent lower than the US$ 159.25 million Q4-2013 and PAT for FY-2014 was 1.3 per cent higher at US$ 574.85 million as compared to the US$ 567.59 million in FY-2013.
Z2Live acquisition
On 6 February, 2015 King DE says that it signed an agreement to acquire Z2Live, Inc. (Z2), a game development company based in Seattle, Washington. Total consideration for the acquisition consists of US$ 45 million in cash, and up to US$ 105 million of additional cash linked to future events including revenues generated by certain games launched by Z2 over a specific period, to be paid annually over a three-year period following the acquisition date.
Through this acquisition, the company claims that it will incorporate a proven team focused on contributing to diversification into new genres. Z2 will be King DE’s first game studio in the United States.
This acquisition is subject to the satisfaction or waiver of customary conditions, including regulatory approval in the United States, and is expected to be completed no later than the end of first quarter 2015 adds the company.
Company Speak
“Our full year and fourth quarter 2014 results demonstrate the strength of our franchises, the extraordinary power of our massive player network and our ability to repeatedly launch new top grossing games,” said King CEO, Riccardo Zacconi. “This is evident in the strong performance of our most recent launch, Candy Crush Soda Saga, which soared to the top of the mobile download list and became a top 10 grossing game worldwide on Apple’s App Store and Google Play Store very quickly after its launch according to App Annie. We are pleased with this recent success and look forward to continuing to deliver innovative games and features to delight our players in 2015 and beyond.”
Gross bookings from mobile platforms increased 10 per cent sequentially to US$ 459 million in Q4-2014, and remained flat year over year. Gross bookings from web platforms were sequentially flat at US$ 126 million in Q4-2014, and decreased 26 per cent year over year.
Revenue was $ US546 million for Q4-2014, representing a sequential increase of US$ 31 million, or 6 per cent, and a year over year decrease of US$ 56 million, or 9 per cent, as compared to Q3-2014 and Q4-2013, respectively.
The increases in both gross bookings and revenue from Q3-2014 to Q4-2014 were primarily due to increased gross bookings related to our newer games, partially offset by lower gross bookings related to our more mature games. Additionally, the company says it experienced increases in monetization during the holiday periods. The sequential increase in revenue was also partially offset by increased deferred revenue related to the continued transition to virtual currency in King DE’s mobile portfolio during Q4-2014 as well as players in the company’s more mature games holding virtual currency over longer periods of time.
FY-2014 Highlights
Accelerated development pace with five new games launched on mobile platforms and three new games on Facebook, up from two mobile and three Facebook games launched in 2013 of the five mobile games launched, four became top 15 grossing games in the US, King DE’s largest market.
Q4-2014 Highlights
The company launched its fifth mobile title of the year, Candy Crush Soda Saga, in November, returning the Candy Crush franchise to sequential growth in Daily Active Users (DAUs).
Network grew to record levels in DAUs, Monthly Active Users (MAUs), and Monthly Unique Users (MUUs) and reached a new quarterly high of 1.5 billion average daily game plays.
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