King and Zynga report key bookings, with King share price up 18% and Zynga down 10%.
As the makers of the largest digital app games reported future metrics, Zynga Inc with ‘Farmville’ and King Digital Entertainment with ‘Candy Crush’, had different stories to tell and opposite outcomes.
Last Thursday was the earnings release date for the two gaming giants:
Zynga reported bookings of $182.4 million, down by $19 million on expectations from StreetAccount analysts.
King bookings rose 8% to $586 million in the fourth quarter, up by $45 million according to analysts. Bookings are the metric on which future revenue is based.
Zynga’s main problem was in recent lack of innovation and new products, however in the earnings announcement the digital entertainment company said that up to 10 new games are in the pipeline to be released in 2015. Chief Executive Don Mattrick aimed at “a goal of ending 2015 with more than 75 percent of our fourth quarter bookings coming from mobile."
Alternatively King was able to make 78% of booking from mobile titles – versus Zynga’s 73% - including the new releases of Bubble Witch 2 Saga and Candy Crush Saga. In King’s earnings report, it announced a gross bookings increase of 20% in 2014 to $2.4 billion, led by strong performance of franchise games. King CEO, Riccardo Zacconi commented, “Our full year and fourth quarter 2014 results demonstrate the strength of our franchises, the extraordinary power of our massive player network and our ability to repeatedly launch new top grossing games.”
The power of King in the market is obvious with three King games as the top 10 grossing games on Apple App Store (U.S.) whilst four were top 10 grossing games on Google Play Store (U.S.) for fourth quarter 2014.
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