Boston, MA 11/27/2014 (wallstreetpr) – King Digital Entertainment PLC (NYSE:KING) has appointed a new chairman to take over from Melvyn Morris, who resigned from the post this week. The new chairman is Gerhard Florin. According to The Wall Street Journal, Florin had an executive career spanning over 20 years at Electronic Arts Inc. (NASDAQ:EA).
King Digital Entertainment, a game developer, is also under pressure from the investors to diversify its revenue stream. The company has mostly relied on its hit title “Candy Crush Saga”.
King Digital Entertainment did not provide additional details about the exit of Morris, except to say that the changes take effect immediately. Although the word went out that Morris was taking a leaving for reasons that were cited as personal, the company has removed his bio from its website.
Diversified revenue stream
The exit of Morris comes at a time when King Digital Entertainment PLC (NYSE:KING) is facing immense pressure from its shareholders to boost its financial performance. The almost overreliance on them mobile game, Candy Crush Saga, is also worrying many investors. The mobile game field has grown hypercompetitive, yet developers are not bringing hit game after hit game.
King Digital Entertainment PLC (NYSE:KING) depends on over 50% of its revenue from Candy Crush Saga. The company also accounted for nearly 80% of last year’s gross bookings. However, profit from Candy Crush Saga declined 20% in the most recent quarter as revenue from the game also fall.
In a recent shareholder update, King Digital Entertainment PLC (NYSE:KING) stated that it was seeking to build a portfolio of hit games, as well as a network of players. Once that is achieved, the management hopes to monetize the same as one way to boost and explore new revenue streams. Riccardo Zacconi, the company’s CEO, highlighted the plan at an investor event organized by Morgan Stanley in Barcelona this month.
King Digital Entertainment PLC (NYSE:KING) competes against such names as Zynga Inc (NASDAQ:ZNGA) and Rovio Entertainment Ltd, the maker of Angry Birds.
King Digital Entertainment PLC (NYSE:KING) after topping out at $17.12 has started to move down. Currently the stock is trading above its 20-Day EMA of $14.81 with RSI of 66.72. Going forward the stock has support at $15.50 and $15.