'Candy Crush' maker King Digital tumbles after 2nd-quarter revenue falls short of expectations

MarketsAssociated Press

Shares of "Candy Crush" maker King Digital Entertainment PLC took a big hit on Tuesday after the company reported second-quarter revenue that fell short of expectations and lowered its full-year guidance.

King Digital, which went public in March, earned $165.4 million, or 52 cents per share, in the April-June quarter. That's up from $125.9 million, or 39 cents per share, a year earlier. Adjusted earnings were 59 cents per share, matching analysts' expectations.

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Revenue rose 30 percent to $593.6 million from $455.5 million.

Analysts, on average, had expected revenue of $609 million, according to FactSet.

King Digital said it now expects gross bookings of $2.25 billion to $2.35 billion for the full year, down from its May guidance of $2.55 billion to $2.66 billion. That figure represents the total amount users pay for virtual items in its games and for access to game tournaments.

Even at the time of its initial public offering, investors had worried that King Digital won't be able to repeat the success of "Candy Crush," which has waned in popularity in recent months.

The company's shares fell $3.95, or 21.7 percent, to $14.25 in after-hours trading. The stock had closed up 3 cents at $18.20. The stock priced at $22.50 in the IPO.