King Digital Entertainment Q3 Profit Down

(RTTNews) - King Digital Entertainment Plc. (KING), interactive entertainment company for the mobile world, reported that its profit for the third quarter ended September 30, 2014 dropped to $141.67 million or $0.45 per share from $229.78 million or $0.71 per share in the prior year.

Adjusted earnings per share was $0.56 lower than last year's $0.70 in the previous year.

Gross bookings were $544 million for third quarter 2014, representing a year over year decrease of $104 million, or 16%, and a sequential decrease of $67 million, or 11%, as compared to third quarter 2013 and second quarter 2014, respectively. In third quarter 2014, 77% of gross bookings were derived from its mobile audience.

Revenue was $514 million for third quarter 2014, representing a year over year decrease of $107 million, or 17%, and a sequential decrease of $79 million, or 13%, as compared to third quarter 2013 and second quarter 2014, respectively.

The decreases in both gross bookings and revenue from second quarter 2014 to third quarter 2014 were primarily due to lower gross bookings from Candy Crush Saga, which were partially offset by increased gross bookings from our newer games

Analysts polled by Thomson Reuters expected the company to report earnings of $0.47 per share and revenues of $495.00 million for the quarter. Analysts' estimates typically exclude special items.

The company expects gross bookings of $525 million to $550 million in fourth quarter 2014.

On November 4, 2014, the Company's Board of Directors approved a share repurchase program of a maximum of $150 million of the Company's ordinary shares to be effected through open market purchases. This program is subject to requisite regulatory and shareholder approvals which the Company is seeking to obtain during the first quarter of 2015.