Thursday, March 27, 2014

'Candy Crush' creator King sees stock drop 15.6 percent as IPO flops

King, the maker of hit game Candy Crush Saga, officially debuted on the New York Public Stock Exchange on Wednesday, on the same day that market research firm App Annie unveiled its February data. The February data offered some good news for those concerned that King is a one-hit wonder, but King's stock price tumbled 15.6 percent from its IPO price of $22.50 a share, closing at $19 a share.

The stock price drop was one of the biggest first day drops for a newly listed U.S. company in the past six months, Bloomberg said, and was also the worst trading debut this year, Renaissance Capital added.

Despite this, things may be looking up for King, as App Annie said that the company, leveraging TV ads, saw Farm Heroes Saga rise 16 places higher into the top ten in iOS monthly revenue at no. 7. That gave King three titles in the iOS top ten, including Candy Crush at no. 2 (but down a slot) and Pet Heroes Saga at no. 8, but down two places.

App Annie said:
Farm Heroes Saga received extensive TV and print campaigns in the United Kingdom and United States, and performed strongly in both markets.

Another app receiving extensive TV commercials in the United States in February was Big Fish Casino, which made significant gains to join the Top 10 games by iOS revenue. It was interesting to note that the commercials for Big Fish Casino targeted female players, a marketing stance that has been adopted by several big game publishers in 2014.
In a CNBC interview, Ricardo Zacconi said:
What we want to achieve is not to find another Candy Crush. That's not what we are here for. What we are here for is to build a portfolio of games. We want to build a network of players, of loyal players, who play our portfolio of games.
Perhaps in sympathy, rival gaming company Zynga -- which makes "Farmville," among other games -- saw its shares drop four percent on Wednesday. Since its 2011 IPO, Zynga's shares have dropped by over 50 percent.

No comments: