Home » Business » Marketing and Advertising

Candy Crush Stock Drop - Komatsu Global KMG.

May 7, 2014
Komatsu Global (KMG) King Digital Entertainment, the developer behind the insanely popular game, Candy Crush Saga, has suffered the ignominy of becoming the worst performing IPO (Initial Public Offering) of 2014 so far after its stock dived significantly below the $22.50 offer price on its first day of trading.

The London-headquartered company's IPO valued it at $7 billion but by the ned of the trading day, investors had begun to question the long term sustainability of its earnings given the overwhelming majority of its revenue is generated by Candy Crush Saga.

"As we suggested before the IPO, $7 billion was a lofty valuation for what was and still is a 'one-trick pony'" said an Komatsu Global tech analyst.

King produces nearly 180 games but Candy Crush Saga is by far its most successful offering and, since its launch in 2012, it has been downloaded more than 500 million times. The game's phenomenal success has sent revenues at King Digital Entertainment soaring from a relatively modest $64 million in 2011 to more than $1.8 billion in 2013.

Komatsu Global says it does not expect King's future offerings to repeat the success of Candy Crush Saga but concedes that the company does have other games which are moderately successful in terms of generating revenue.

"Games like Farm Heroes Saga and Bubble Witch Saga are solid earners but they're not 'Money Shot' successes like Candy Crush. Frankly, we're having a hard time identifying value here" concluded the Komatsu Global (KMG) analyst.

------------

Global-News-Now Ltd is a boutique public relations firm, with a wide array of experiences and a solid reputation. We strive to be your marketing communications partner, empowering you with a targeted communications campaign that is backed by a thorough understanding of your business. We believe in delivering measurable results that directly impact the bottom line and meet business goals.

Global-News-Now Ltd.'s award winning team has a proven track record of implementing the right tactics to meet your business needs. We pride ourselves in maintaining solid and long-term relationships with our clients and staff.
About the Author
http://www.pressreleasecircle.com/komatsu-global-kmg-wall-street-plunge-game-makers
Rating:
Please Rate:
(Average: Not rated)
Views: 196
Print Email Share
Article Categories