Shares fell over 14 per cent due to its “game release schedule, the impact of foreign currency changes to date and recent trends”, King said. The business expected the mid-year period to be “seasonally softer”, returning to growth trends in the latter part of the year.”Overall, shares have dropped by 17 per cent since its IPO in 2014. The big drop in its shares came despite first quarter sales figures beating market expectations. This decline, according to King, was primarily because of Candy Crush. While newer games gave a boost to the current quarter, the company has started seeing lower spending on older games, and analysts believe that since the $500m offering, the company has relied “too often” on Candy Crush. Pacific Crest Securities analyst Evan Wilson suggested Candy Crush had carried King since its release in 2012, and that “the story for growth after Candy is still uncertain”. Wilson explained that mobile game developers initially rely on a key franchise or genre, and that diversification “has been a rare occurrence”. Wilson is unsure whether King would “buck the trend”. It has plans to launch new games, but the probability that any one would become a big contributor is “relatively small”, Wilson said. The next two games are AlphaBetty Saga and Paradise Bay. Read more about game companies:
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