King Digital Entertainment PLC (KING) Getting Crushed On Weak Results, Waning Candy Crush Revenue

The company is pushing towards other games, trying to match the success it had with Candy Crush Saga. Paradise Bay was launched last week and involves taking players to a tropical destination and letting them build their resources. While discussing the game, Lou Fasulo, Studio Head at King Digital Entertainment PLC (NYSE:KING), added, “It’s a new type of game for King which offers immersive and strategic gameplay, allowing players to build their own trading port, uncover the mysteries of their island and interact with an array of fun and friendly characters. Paradise Bay offers players the ultimate escape.”

It is important to consider that King Digital Entertainment PLC (NYSE:KING) reported a decline in its revenue during the first quarter as well, with its revenue dropping by 6% year-over-year. Further, its monthly unique users (MUUs) for the second quarter were down to 340 million, a drop in excess of 1% from the previous quarter.

Considering the sequential drop in the revenue of King Digital Entertainment PLC (NYSE:KING), and the increasingly competitive mobile games landscape, we do not recommend a long position in the stock at the moment.

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