IPO of King – development of revenue and number of customers

King filed for IPO already last September. It was said to delay IPO due to dependency on profits from one game only. Was that all? What has changed after that?

Another new thing for me was the development of revenues, which i found from Venturebeat. Q3 vs Q4/2013 dropped from $648 to $632 millions (2.5%). EBITDA suffered even more dropping down by 7.2% (from $290 to $269 millions). This is a bit odd inflexibility for gaming company like this. One could imagine that the cost structure would be more flexible, but top line loss seem to hit really heavily directly into bottom line.

Also number of unique paying users seem to have peaked earlier last year, reflecting the same thing as reported revenue: growth is not continuing for current offering available from King. Q3 vs Q4/2013 show peak down from 13M to 12M users.

This makes me wonder even more about the valuation, which i was discussing yesterday. Looking forward to see Q1/2014 results before drawing conclusions as I like the basic idea in this company. They just need to keep up the good act they have done so far.