King Digital Entertainment plc, an interactive entertainment company, produces and distributes digital games on multiple platforms in the United States, the United Kingdom, Germany, and internationally. The company primarily provides Candy Crush Saga, Candy Crush Soda Saga, Farm Heroes Saga, Pet Rescue Saga, and Bubble Witch 2 Saga games. It also offers king.com and royalgames.com Websites; facebook; and mobile platforms, such as iOS and Android. King Digital Entertainment plc is based in Dublin, Ireland.
King Digital Entertainment plc Reports Unaudited Consolidated Earnings and Operating Results for the Third Quarter and Earnings Results for the Nine Months Ended September 30, 2015; Provides Operating Guidance for the Fourth Quarter of 2015
Nov 4 15
King Digital Entertainment plc reported unaudited consolidated earnings and operating results for the third quarter and earnings results for the nine months ended September 30, 2015. For the quarter, the company's revenue was $479,709,000 against $514,352,000 a year ago. Profit before tax was $173,850,000 against $187,444,000 a year ago. Profit was $142,684,000 or $0.45 per diluted share against $141,665,000 or $0.45 per diluted share a year ago. Adjusted revenue was $473,395,000 against $523,353,000 a year ago. Adjusted EBITDA was $180,381,000 against $216,069,000 a year ago. The year over year decrease was primarily due to lower gross bookings and revenue and higher research and development and general and administrative expenses, which were partially offset by lower platform fees and sales and marketing expenses. Adjusted profit was $141,615,000 or $0.45 per share against $177,406,000 or $0.56 per share a year ago. Capital expenditures were $15 million against $8 million a year ago. Net cash provided by operating activities was $150 million against $176 million a year ago. The increase in profit was primarily due to change in deferred revenue, acquisition-related benefit, lower income tax expense and lower share-based and other equity-related compensation expenses, which were partially offset by lower adjusted EBITDA and foreign exchange gain. The decreases in both gross bookings and revenue from third quarter 2014 to third quarter 2015 were primarily due to lower gross bookings from more mature games, in particular Candy Crush Saga, partially offset by increased gross bookings from newer games, in particular Candy Crush Soda Saga. The decrease in revenue also reflects a higher sales tax related to the new value added tax legislation in the European Union effective in 2015 and sales tax provision reductions in other jurisdictions in 2014, partially offset by the change in deferred revenue primarily resulting from the recognition of breakage revenue.
For the nine months, the company's revenue was $1,538,754,000 against $1,714,624,000 a year ago. Profit before tax was $544,311,000 against $564,194,000 a year ago. Profit was $426,112,000 or $1.34 per diluted share against $434,234,000 or $1.38 per diluted share a year ago. Net cash provided by operating activities was $464,287,000 against $506,715,000 a year ago. Purchases of intangible assets were $9,951,000 against $5,520,000 a year ago. Purchase of property, plant and equipment was $25,419,000 against $18,270,000 a year ago.
For the quarter, the company's daily active users were 133 million against 137 million a year ago. Monthly active users were 474 million against 495 million a year ago. Monthly unique users were 330 million against 348 million a year ago. Monthly unique payers were 6.847 million against 8.669 million a year ago. Monthly gross average bookings per paying user were $24.45 compared to $20.92 a year ago. Total gross bookings were $502 million, representing a sequential decrease of $27 million, or 5%, and a year over year decrease of $42 million, or 8%. Excluding the impact of changes in foreign exchange rates, gross bookings would have decreased by approximately 5% sequentially, and increased slightly year over year.
The company expects gross bookings of $475 million to $500 million in fourth quarter of 2015.