King Files for $500 Million IPO
Little things like trademark disputes, intellectual property law abuse and being a frontrunner for The Consumerist’s worst company in America poll doesn’t stop the progress train.
King Digital, the company behind Candy Crush Saga, filed an application with the SEC for an Initial Public Offering of shares on the New York Stock Exchange.
According to the filing, King absolutely dominated the competition in the free-to-play mobile game sector. King says that they earned $1.88 billion in revenue in 2013. For comparison, Zynga, the former big name in F2P gaming, made $873 million while Clash of Clans maker Supercell made $892 million. Yes, King made more than their two biggest competitors combines and almost $1 billion more than the next closest rival.
King also reported net income of $568 million, up from $7.8 million in 2012. That means their net profit margin is about 30% while their net income grew almost 7,300%. Last year was the first full-year that Candy Crush Saga was available on mobile platforms which helped to increase revenue and profit. Previously, it had been a Facebook exclusive game.
Interestingly, the filing also reveals that Candy Crush accounted for 78% of King’s total revenue in the fourth quarter of 2013. Basically, the risk for investors is that if Candy Crush’s popularity ends, so does almost all of King’s revenue.
The company has seen public opinion on them sour of late as they have been involved in high-profile trademark disputes with the makers of The Banner Saga and CandySwipe. However, that doesn’t seem to have stopped them from going forward with the IPO.
Source: Wall Street Journal
Posted on February 20, 2014, in Games and tagged Business of Gaming, Candy Crush Saga, King. Bookmark the permalink. 1 Comment.
Reblogged this on spazticnerd and commented:
Well the game addicts make them money in a way, I guess. Lol.