KING DIGITAL ENTERTAINMENT PLC LONDON and NEW YORK, Feb. 11, 2016 /PRNewswire/ -- King Digital Entertainment plc ("King" or the "Company") (NYSE: KING), a leading interactive entertainment company for the mobile world, today reported financial results for the fourth quarter and full year ended December 31, 2015.
King CEO Riccardo Zacconi said, "Our fourth quarter 2015 results reflect our continued execution on our franchise strategy. For the fourth consecutive quarter, both Candy Crush Saga and Candy Crush Soda Saga continued to rank within the top 5 grossing games in the Apple App Store and Google Play Store in the U.S. We are also pleased to have launched the third installment of the Candy Crush franchise, Candy Crush Jelly Saga, which introduces new challenges and game modes, including our first 'boss mode', to offer our players another fun way to play one of the world's most popular games."
Financial Summary and Key Performance Metrics (in millions, except per share and per user data)
Three Months Ended Years Ended
December 31, December 31,
------------ ------------
2015 2014 2015 2014
---- ---- ---- ----
Non-GAAP Results
Gross bookings $509 $586 $2,145 $2,382
Adjusted revenue $478 $559 $2,021 $2,284
Adjusted EBITDA $188 $237 $826 $950
Adjusted EBITDA margin 39% 42% 41% 42%
Capital expenditures $26 $17 $62 $41
Adjusted profit $123 $184 $617 $738
Adjusted EPS $0.38 $0.57 $1.93 $2.30
GAAP Results
Revenue $461 $546 $1,999 $2,260
Profit $91 $141 $517 $575
Diluted EPS $0.28 $0.44 $1.62 $1.79
Net cash provided by operating activities $212 $155 $676 $661
Cash and cash equivalents at end of period $1,107 $964 $1,107 $964
Key Performance Metrics
Monthly active users (MAUs) 449 533 494 499
Daily active users (DAUs) 128 149 141 142
Monthly unique users (MUUs) 318 356 338 350
Monthly unique payers (MUPs) 6.583 8.344 7.386 9.824
Monthly gross average bookings per $25.76 $23.42 $24.20 $20.21
paying user (MGABPPU)
Full Year 2015 Highlights
-- On a worldwide basis, both Candy Crush Saga and Candy Crush Soda Saga
were top 10 grossing games for full year 2015 on both the Apple App
Store and Google Play Store(1)
-- Further diversified the game portfolio with the launch of four mobile
games, each introducing a new game play to King players around the world
-- Two King games, Paradise Bay and Blossom Blast Saga, were named in
Facebook's 2015 Games of the Year, and Candy Crush Soda Saga was
highlighted by Google as one of the Best Games of 2015
-- Expanded distribution platforms to include Windows 10 and entered into
agreement for certain King games to automatically install with Windows
10 during an initial period
-- Grew portfolio of localized games in Asia with launches of six titles in
South Korea, five titles in China, and four titles in Japan
Full Year 2015 Results Summary
Gross Bookings and Revenue
-- Gross bookings were $2.1 billion in 2015, representing an annual
decrease of $238 million, or 10%. Excluding the impact of changes in
foreign exchange rates, gross bookings would have decreased by
approximately 3%.
-- In 2015, 82%, or $1.8 billion of gross bookings were derived from our
mobile audience. This represented a 3% annual decline in mobile gross
bookings. Gross bookings from web platforms were $379 million,
representing a 33% annual decrease.
-- Revenue was $2.0 billion in 2015, representing an annual decrease of
$261 million or 12%.
Profit
-- Profit for the year was $517 million, representing a year over year
decrease of $58 million, or 10%.
Adjusted EBITDA
-- Adjusted EBITDA was $826 million in 2015 representing a year over year
decrease of $124 million, or 13%.
Cash and Cash Equivalents
-- Cash and cash equivalents were $1.1 billion at December 31, 2015,
representing a year over year increase of $143 million, primarily
resulting from net cash provided by operating activities, partially
offset by net cash used in investing and financing activities.
Fourth Quarter 2015 Results Summary
Gross Bookings and Revenue
-- Gross bookings were $509 million for fourth quarter 2015, representing a
sequential increase of $7 million, or 1%, and a year over year decrease
of $78 million, or 13%. Excluding the impact of changes in foreign
exchange rates, gross bookings would have increased by approximately 3%
sequentially, and would have decreased by approximately 8% year over
year.
-- In fourth quarter 2015, 84% or $428 million of gross bookings were
derived from our mobile audience. This represented a 3% sequential
increase and a 7% year over year decrease in mobile gross bookings.
Gross bookings from web platforms were $80 million in fourth quarter
2015, representing 8% sequential and 37% year over year decreases.
-- Gross bookings from games other than Candy Crush Saga(2) were $302
million for fourth quarter 2015, in line with third quarter 2015, and
representing a year over year decrease of $22 million, or 7%.
-- Revenue was $461 million for fourth quarter 2015, representing a
sequential decrease of $19 million, or 4%, and a year over year decrease
of $85 million, or 16%.
-- The increase in gross bookings from third quarter 2015 to fourth quarter
2015 was primarily driven by growth in Candy Crush Saga and our newer
games. The sequential decrease in revenue reflects the growth in gross
bookings which was more than offset by an increase in deferred revenue
for virtual item balances held by players.
-- The year over year decreases in both gross bookings and revenue were
primarily due to lower gross bookings from our more mature games, in
particular Candy Crush Saga, partially offset by increased gross
bookings from our newer games, in particular Candy Crush Soda Saga.
Additionally, no new franchise games were launched in 2015, as compared
to three franchise games launched in the prior year. New franchise games
tend to offset declines in our more mature games. The decrease in
revenue also reflects a higher sales tax related to the value added tax
legislation in the European Union effective in 2015, and sales tax
provision reductions in other jurisdictions in 2014.
Profit
-- Profit was $91 million for fourth quarter 2015, representing a decrease
of $52 million, or 36%, compared to third quarter 2015. The decrease was
primarily due to change in deferred revenue and higher
acquisition-related and income tax expenses, which were partially offset
by higher adjusted EBITDA.
-- Fourth quarter 2015 profit decreased by $50 million, or 36%, compared to
fourth quarter 2014. The decrease was primarily due to lower adjusted
EBITDA, a foreign exchange loss compared to a gain in the prior year
period, and higher acquisition-related expenses, which were partially
offset by lower income tax expense.
Adjusted EBITDA
-- Fourth quarter 2015 adjusted EBITDA was $188 million, representing an
increase of $7 million, or 4%, compared to third quarter 2015. The
sequential increase was primarily due to higher gross bookings and lower
sales and marketing expenses, which were partially offset by higher
platform fees and research and development expenses.
-- Compared to fourth quarter 2014, adjusted EBITDA decreased $49 million,
or 21%. 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.
Cash and Cash Equivalents
-- Cash and cash equivalents were $1.1 billion at December 31, 2015, up
$187 million since September 30, 2015.
Network Reach
-- MAUs were 449 million in fourth quarter 2015, down 25 million, or 5%,
from third quarter 2015, and down 84 million, or 16%, from fourth
quarter 2014.
-- DAUs were 128 million in fourth quarter 2015, down 5 million, or 4%,
from third quarter 2015, and down 21 million, or 14%, from fourth
quarter 2014.
-- The sequential and year over year decreases in MAUs and DAUs were due to
decreased activity, primarily in Candy Crush Saga as well as in our
other mature games, partially offset by increased activity in our newer
games. The rate of decline was higher on web than mobile, which we
believe is primarily due to newer mobile game launches that have not
launched on web, and a continuing decline in Facebook desktop players.
-- MUUs were 318 million in fourth quarter 2015, down 12 million, or 4%,
from third quarter 2015, and down 38 million, or 11%, from fourth
quarter 2014.
-- The sequential decrease in MUUs was reflected in both web and mobile,
but at a greater rate of decline on web, which we believe is primarily
due to the fourth quarter mobile launch of a game which was not also
launched on web, and a continuing decline of Facebook desktop players.
-- The year over year decrease in MUUs was reflected in both web and
mobile, but at a greater rate of decline on web, which we believe is
primarily due a continuing decline of Facebook desktop players, and
mobile game launches in the second half of 2015 that have not launched
on web.
Monetization
-- MUPs in fourth quarter 2015 were 6.6 million, down 264,000, or 4%, from
third quarter 2015, and down 1.8 million, or 21%, from fourth quarter
2014.
-- The sequential decrease in MUPs reflects decreases in mobile and web.
MUPs declined at a slower rate than in third quarter 2015, which we
believe reflects our efforts to improve engagement and monetization
through continuous game optimization and ongoing deployment of live ops
in our franchise games.
-- The year over year decrease in MUPs reflects decreases on mobile and
web. The decrease was primarily in our less engaged payers, which we
define as payers who paid in only one game. Additionally, our transition
to virtual currency in our mobile games through the end of 2014
contributed to the decline in MUPs as virtual currency reduces the
frequency of transactions due to purchases of larger packages of virtual
currency which are used over extended periods.
-- MGABPPU increased to $25.76 in fourth quarter 2015, up $1.31, or 5%,
from third quarter 2015, and up $2.34, or 10%, from fourth quarter 2014.
-- The sequential and year over year increases in MGABPPU primarily reflect
the impact of product optimizations introduced in our games, including
live ops.
Activision Blizzard Transaction
On November 2, 2015 the Company announced that it had signed a definitive agreement to be acquired by Activision Blizzard, Inc., a global interactive entertainment company (the "Acquisition"). Under the terms of the agreement Activision Blizzard will purchase all outstanding and issued shares of King for $18 in cash per share, for a total equity value of approximately $5.9 billion. The proposed transaction is being implemented by means of a scheme of arrangement under Irish law (the "Scheme"), and the resolutions required to approve the Scheme were passed by the requisite shareholder majorities at the Scheme meetings and the related extraordinary general meeting held on January 12, 2016.
The completion of the Acquisition remains subject to regulatory approvals and other customary closing conditions set out in the scheme circular related to the Acquisition, including the satisfaction of the EU Merger Regulation condition and sanction of the Scheme by the High Court of Ireland at the hearing to be held on February 18, 2016. The Scheme is expected to take effect in late February, subsequent to this hearing.
About King
King Digital Entertainment plc (NYSE: KING) is a leading interactive entertainment company for the mobile world. It had a network of 318 million monthly unique users as of fourth quarter 2015, has developed more than 200 exclusive games, and offers games in over 200 countries and regions through its king.com and royalgames.com websites, Facebook, and mobile distribution platforms such as the Apple App Store, Google Play Store and Amazon Appstore. King has game studios in Stockholm, Malmö, London, Barcelona, Berlin, Singapore, and Seattle, along with offices in San Francisco, Malta, Seoul, Tokyo, Shanghai and Bucharest.
Forward Looking Statements
All statements other than statements of historical fact contained in this release, including statements regarding the Activision Blizzard Acquisition are forward-looking statements. King has based these forward-looking statements on its estimates and assumptions as of the date of this release. These forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: uncertainties as to the timing of the Acquisition; uncertainties as to whether Activision Blizzard will be able to consummate the Acquisition; the possibility that competing offers will be made; the possibility that certain conditions to the consummation of the Acquisition will not be satisfied; the possibility that Activision Blizzard will be unable to obtain regulatory approvals for the Acquisition on a timely basis or at all, or be required, as a condition to obtaining regulatory approvals, to accept conditions that could reduce the anticipated benefits of the Acquisition; the possibility that shareholders will file lawsuits challenging the Acquisition, including actions seeking to rescind the Scheme or enjoin the consummation of the Acquisition; the ability to meet expectations regarding the accounting and tax treatments of the Acquisition; changes in relevant tax and other laws or regulations; the possibility that the Scheme may be terminated in circumstances that require King to reimburse certain expenses to Activision Blizzard or Activision Blizzard to pay a termination fee to King related to the Acquisition; and changes in the economic and financial conditions of the businesses of Activision Blizzard, King, or the combined company.
New risks emerge from time to time. It is not possible for King management to predict all risks, nor can King assess the impact of all factors on its business or the Activision Blizzard Acquisition or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that King may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. King does not undertake any obligation to update publicly or revise any forward-looking statements for any reason after the date of this release, nor to conform these statements to actual results, future events, or to changes in King's expectations.
Non-GAAP and Other Financial Measures
King uses International Financial Reporting Standards ("IFRS"). In addition to IFRS financials, this release includes certain financial measures not based on IFRS, including gross bookings, adjusted revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted profit and adjusted EPS, as well as certain gross bookings information presented on a constant currency basis. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The non-GAAP financial measures used by King may differ from the non-GAAP financial measures used by other companies, and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. Some limitations of the non-GAAP financial measures we use are listed below:
Gross Bookings: Gross bookings is a non-GAAP financial measure that is not calculated in accordance with IFRS. Gross bookings is the economic benefit collected from the sale of virtual items and for access to skill tournaments. The Company uses gross bookings to evaluate the results of operations, generate future operating plans and assess performance. While King believes that this non-GAAP financial measure provides a meaningful measurement of the business performance during a particular period because it measures the total cash spend by players in the period, this information should be considered as supplemental in nature and is not meant as a substitute for revenue recognized in accordance with IFRS. In addition, other companies, including companies within our industry, may calculate gross bookings differently or not at all, which reduces its usefulness as a direct comparative measure.
Adjusted Revenue: Adjusted revenue is a non-GAAP financial measure that is not calculated in accordance with IFRS. King defines adjusted revenue as revenue adjusted to include changes in deferred revenue. King believes that adjusted revenue is a useful metric for calculating adjusted EBITDA margin and understanding our operating results and ongoing profitability.
Adjusted EBITDA and Adjusted EBITDA Margin: Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures that are not calculated in accordance with IFRS. King defines adjusted EBITDA as profit (loss), adjusted for income tax expense (credit), foreign currency exchange loss (gain), acquisition-related (benefit) expense (including acquisition-related contingent consideration fair value adjustments and other acquisition-related adjustments), non-operating (income) expense, net finance (income) costs, depreciation, amortization, share-based and other equity-related compensation (including social security charges associated therewith) and changes in deferred revenue. King defines adjusted EBITDA margin as adjusted EBITDA as a percentage of adjusted revenue. King believes that adjusted EBITDA and adjusted EBITDA margin are useful metrics for investors to understand and evaluate our operating results and ongoing profitability because they permit investors to evaluate our recurring profitability from our ongoing operating activities. King also uses these measures internally to establish forecasts, budgets and operational goals and to manage and monitor our business, as well as evaluating our ongoing and historical performance. Adjusted EBITDA and adjusted EBITDA margin have certain limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results of operations as reported under IFRS. Other companies, including companies in our industry, may calculate adjusted EBITDA differently or not at all, limiting its usefulness as a direct comparative measure.
Capital Expenditures: King defines capital expenditures as the amount paid in the period for the purchase of property, plant and equipment, and intangible assets. King monitors capital expenditures as a measure of the amount we have invested in maintaining or growing the scope of our business. Other companies, including companies in our industry, may calculate capital expenditures differently or not at all, limiting its usefulness as a direct comparative measure.
Adjusted Profit: Adjusted profit is a non-GAAP financial measure that is not calculated in accordance with IFRS. King defines adjusted profit as profit (loss), adjusted for share-based and other equity-related compensation (including social security charges associated therewith), changes in deferred revenue, acquisition-related (benefit) expense (including acquisition-related contingent consideration fair value adjustments and other acquisition-related adjustments) and amortization of acquired intangible assets. Other companies, including companies in our industry, may calculate adjusted profit differently or not at all, limiting its usefulness as a direct comparative measure.
Adjusted EPS: Adjusted EPS is a non-GAAP financial measure that is not calculated in accordance with IFRS. King defines adjusted EPS as adjusted profit divided by the diluted weighted average number of ordinary shares in issue during the period.
Foreign Exchange Effect on Gross Bookings: Certain gross bookings information in this release is presented on a constant currency basis. This information was calculated using exchange rates consistent with those in effect for the comparative periods. We believe the constant currency measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business. Investors should be cautioned that the effect of changing foreign currency exchange rates has an actual effect on operating results.
Reconciliations of these non-GAAP measures to the most directly comparable IFRS measure are included in the accompanying tables.
For definitions of key performance indicators including MAUs, DAUs, MUUs, MUPs and MGABPPU, and other financial measures including Movement in player wallet and other adjustments, please see "Key Operating Metrics" and "Non-GAAP Financial Measures" in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 6-K filed by the Company with the U.S. Securities and Exchange Commission on November 5, 2015.
Certain figures in the release may not recalculate exactly due to rounding. This is because percentages and/or figures contained herein are calculated based on actual numbers and not the rounded numbers presented.
Contacts
Investors: Media:
Alice Ryder, VP of Investor
Relations Susannah Clark, VP of Communications
ir@king.com press@king.com
Brunswick Group
kingteam@brunswickgroup.com
KING DIGITAL ENTERTAINMENT PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
December 31,
------------
2015 2014
---- ----
Revenue $460,736 $545,617
Other income 2,264 9,163
Costs and expenses*:
Cost of revenue 151,445 174,774
Research and development 52,641 48,533
Sales and marketing 71,493 107,763
General and
administrative 56,145 37,075
------ ------
Total costs and expenses 331,724 368,145
------- -------
Other gains 208 17,645
Net finance costs (6) (196)
--- ----
Profit before tax 131,478 204,084
------- -------
Income tax expense 40,811 63,467
------ ------
Profit $90,667 $140,617
======= ========
Earnings per share
attributable to the
equity holders of the
Company during the
period:
Basic earnings
per share $0.29 $0.45
Diluted
earnings per
share $0.28 $0.44
Weighted average number
of shares used in
computing earnings per
share:
Basic 312,721 315,207
Diluted 320,822 322,203
_______________
* Includes share-based
and other equity-
related compensation
expense as follows:
Cost of revenue $165 $507
Research and development 7,406 11,623
Sales and marketing 2,235 2,042
General and
administrative 11,360 12,927
------ ------
Total share-
based and
other equity-
related
compensation
expense $21,166 $27,099
======= =======
KING DIGITAL ENTERTAINMENT PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Years Ended
December 31,
------------
2015 2014
---- ----
Revenue $1,999,490 $2,260,241
Other income 13,079 9,163
Costs and expenses*:
Cost of revenue 636,295 716,743
Research and
development 198,445 177,934
Sales and marketing 344,822 455,408
General and
administrative 178,410 184,236
------- -------
Total costs and
expenses 1,357,972 1,534,321
--------- ---------
Other gains 21,859 34,100
Net finance costs (667) (905)
---- ----
Profit before tax 675,789 768,278
------- -------
Income tax expense 159,010 193,427
------- -------
Profit $516,779 $574,851
======== ========
Earnings per share
attributable to the
equity holders of the
Company during the
year:
Basic
earnings per
share $1.65 $1.86
Diluted
earnings per
share $1.62 $1.79
Weighted average number
of shares used in
computing earnings per
share:
Basic 312,428 309,120
Diluted 319,438 320,301
_______________
* Includes share-based
and other equity-
related compensation
expense as follows:
Cost of
revenue $1,254 $5,709
Research and
development 39,912 63,992
Sales and marketing 10,925 11,712
General and
administrative 47,780 85,876
------ ------
Total share-
based and
other
equity-
related
compensation
expense $99,871 $167,289
======= ========
KING DIGITAL ENTERTAINMENT PLC
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
(unaudited)
Years Ended
December 31,
------------
2015 2014
---- ----
Assets
Current assets
Cash and cash equivalents $1,107,386 $963,972
Trade and other receivables 157,880 228,392
Income tax receivable 39,654 103,748
------ -------
Total current assets 1,304,920 1,296,112
--------- ---------
Non current assets
Intangible assets, net 104,744 48,587
Property, plant and equipment,
net 56,541 34,310
Deferred tax assets 30,745 14,733
Income tax receivable 34,598 38,431
Other deposits 2,599 9,604
----- -----
Total non current assets 229,227 145,665
------- -------
Total assets $1,534,147 $1,441,777
========== ==========
Liabilities and shareholders'
equity
Current liabilities
Trade and other payables 101,323 137,638
Deferred revenue 56,274 34,310
Income tax liabilities 167,570 232,637
Provision for other liabilities 4,017 -
----- ---
Total current liabilities 329,184 404,585
------- -------
Non current liabilities
Deferred tax liabilities 3,634 669
Income tax liabilities 52,136 51,589
Provision for other liabilities 9,673 3,055
Other non current liabilities 4,356 13,000
----- ------
Total non current liabilities 69,799 68,313
------ ------
Total liabilities $398,983 $472,898
-------- --------
Shareholders' equity
Share capital 77 78
Other reserves 404,181 456,499
Retained earnings 730,906 512,302
------- -------
Total shareholders' equity 1,135,164 968,879
--------- -------
Total liabilities and
shareholders' equity $1,534,147 $1,441,777
========== ==========
KING DIGITAL ENTERTAINMENT PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Years Ended
December 31,
------------
2015 2014
---- ----
Cash flows from operating
activities
Profit for year $516,779 $574,851
Adjustments to reconcile profit
to net cash provided by
operating activities:
Depreciation and amortization 27,359 14,845
Equity settled share-based
payments 83,345 116,877
Unrealized foreign currency
exchange gain (7,752) (32,835)
Loss on disposal of property,
plant and equipment &
intangible assets &
derecognition of intangible
assets 3,486 1,055
Impairment charge 2,875 -
Net finance costs 667 905
Income tax expense 159,010 193,427
Change in fair value of
contingent consideration (20,000) (4,000)
Change in deferred revenue 21,964 23,368
Change in provisions 10,635 (15,513)
Changes in operating assets and
liabilities:
Trade receivables 78,141 4,020
Prepayments, other receivables,
current and non current assets (3,974) (15,505)
Trade payables (14,740) (5,488)
Accrued expenses and other
liabilities (16,058) (44,130)
------- -------
Cash generated from operations 841,737 811,877
Interest received 278 275
Finance costs paid (783) (1,020)
Income tax paid, net of refunds (165,051) (149,847)
-------- --------
Net cash provided by operating
activities 676,181 661,285
Cash flows from investing
activities
Purchases of intangible assets (13,589) (9,729)
Purchase of property, plant and
equipment (47,996) (31,274)
Purchase of business, net of
cash acquired (44,574) (17,969)
------- -------
Net cash used in investing
activities (106,159) (58,972)
Cash flows from financing
activities
Payment of dividends (298,175) (363,876)
Proceeds from initial public
offering - 329,404
Repurchase of the company's
share capital (125,729) (1,240)
Proceeds from exercise of share
options and employee share
plan 5,725 3,062
----- -----
Net cash used in financing
activities (418,179) (32,650)
-------- -------
Net increase in cash and cash
equivalents 151,843 569,663
------- -------
Cash and cash equivalents at
the beginning of the year 963,972 408,695
Exchange losses on cash and
cash equivalents (8,429) (14,386)
------ -------
Cash and cash
equivalents at the
end of the year $1,107,386 $963,972
========== ========
Reconciliations of Non-GAAP Results to Nearest GAAP Measures
(in thousands, except per share amounts)
(unaudited)
Years Ended
December 31,
------------
2015 2014
---- ----
Reconciliation of
Revenue to Gross
Bookings:
Revenue $1,999,490 $2,260,241
Sales tax 124,539 101,665
Other revenue (5,814) (8,648)
Movement in player
wallet and other
adjustments 4,683 5,755
Change in deferred
revenue 21,964 23,368
------ ------
Gross
bookings $2,144,862 $2,382,381
========== ==========
Reconciliation of
Revenue to
Adjusted Revenue:
Revenue $1,999,490 $2,260,241
Change in deferred
revenue 21,964 23,368
------ ------
Adjusted
revenue $2,021,454 $2,283,609
========== ==========
Reconciliation of
Profit to Adjusted
EBITDA:
Profit $516,779 $574,851
Add:
Income tax expense 159,010 193,427
Foreign currency
exchange gain (1,859) (29,100)
Acquisition-
related expense 2,001 4,248
Non-operating
(income) expense (11) 413
Net finance costs 667 905
Share-based and
other equity-
related
compensation 99,871 167,289
Change in deferred
revenue 21,964 23,368
Depreciation and
amortization 27,359 14,845
------ ------
Adjusted
EBITDA $825,781 $950,246
======== ========
Adjusted
EBITDA
margin 41% 42%
Reconciliation of
Profit to Adjusted
Profit:
Profit $516,779 $574,851
Add:
Share-based and
other equity-
related
compensation 99,871 167,289
Acquisition-
related expense 2,001 4,248
Change in deferred
revenue 21,964 23,368
Amortization of
acquired
intangible assets 2,535 745
Tax effect of
adjustments (25,938) (32,744)
------- -------
Adjusted
profit $617,212 $737,757
======== ========
Reconciliation of
Adjusted EPS:
Adjusted
profit $617,212 $737,757
Diluted weighted
average number of
ordinary shares 319,438 320,301
Adjusted
EPS $1.93 $2.30
Reconciliations of Non-GAAP Results to Nearest GAAP Measures
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
December 31,
------------
2015 2014
---- ----
Reconciliation of
Revenue to Gross
Bookings:
Revenue $460,736 $545,617
Sales tax 30,350 27,406
Other revenue (1,094) (1,820)
Movement in player
wallet and other
adjustments 1,125 1,496
Change in deferred
revenue 17,657 13,583
------ ------
Gross
bookings $508,774 $586,282
======== ========
Reconciliation of
Revenue to Adjusted
Revenue:
Revenue $460,736 $545,617
Change in deferred
revenue 17,657 13,583
------ ------
Adjusted
revenue $478,393 $559,200
======== ========
Reconciliation of
Profit to Adjusted
EBITDA:
Profit $90,667 $140,617
Add:
Income tax expense 40,811 63,467
Foreign currency
exchange loss (gain) 792 (15,145)
Acquisition-related
expense 8,718 464
Non-operating income 1 1,510
Net finance costs 7 196
Share-based and other
equity-related
compensation 21,166 27,099
Change in deferred
revenue 17,657 13,583
Depreciation and
amortization 8,031 5,553
----- -----
Adjusted
EBITDA $187,850 $237,344
======== ========
Adjusted
EBITDA
margin 39% 42%
Reconciliation of
Profit to Adjusted
Profit:
Profit $90,667 $140,617
Add:
Share-based and other
equity-related
compensation 21,166 27,099
Acquisition-related
expense 8,718 464
Change in deferred
revenue 17,657 13,583
Amortization of
acquired intangible
assets 703 461
Tax effect of
adjustments (15,432) 1,960
------- -----
Adjusted
profit $123,479 $184,184
======== ========
Reconciliation of
Adjusted EPS:
Adjusted
profit $123,479 $184,184
Diluted weighted
average number of
ordinary shares 320,822 322,203
Adjusted
EPS $0.38 $0.57
Reconciliations of Non-GAAP Results to Nearest GAAP Measures
(in thousands)
(unaudited)
Three Months
Ended
September 30,
2015
----
Reconciliation of Revenue to Gross Bookings:
Revenue $479,709
Sales tax 29,259
Other revenue (1,485)
Movement in player wallet and other adjustments 975
Change in deferred revenue (6,314)
------
Gross bookings $502,144
========
Reconciliation of Profit to Adjusted EBITDA:
Profit $142,684
Add:
Income tax expense 31,166
Foreign currency exchange gain (1,614)
Acquisition-related benefit (12,537)
Non-operating income -
Net finance costs 272
Share-based and other equity-related compensation 19,458
Change in deferred revenue (6,314)
Depreciation and amortization 7,266
-----
Adjusted EBITDA $180,381
========
Adjusted EBITDA margin 38%
Reconciliations of Non-GAAP Results to Nearest GAAP Measures
(in thousands)
(unaudited)
Foreign Exchange Effect on
Gross Bookings:
Three Months Ended
------------------
Sequential December 31, September 30,
2015 2015
---- ----
Reported gross
bookings $508,774 $502,144
Foreign exchange effect on
Q4-15 gross bookings using
Q3-15 rates 7,884
-----
Gross bookings
excluding
foreign
exchange effect $516,658
========
Reported gross
bookings
sequential
change % 1%
Gross bookings
excluding
foreign
exchange effect
sequential
change % 3%
Year over Year Three Months Ended
December 31,
------------
2015 2014
---- ----
Reported gross
bookings $508,774 $586,282
Foreign exchange effect on
Q4-15 gross bookings using
Q4-14 rates 32,282
------
Gross bookings
excluding
foreign
exchange effect $541,056
========
Reported gross
bookings year
over year
change % (13%)
Gross bookings
excluding
foreign
exchange effect
year over year
change % (8%)
Year over Year Years Ended
December 31,
------------
2015 2014
---- ----
Reported gross
bookings $2,144,862 $2,382,381
Foreign exchange effect on
full year 2015 gross
bookings using 2015 rates 160,800
-------
Gross bookings
excluding
foreign
exchange effect $2,305,662
==========
Reported gross
bookings year
over year
change % (10%)
Gross bookings
excluding
foreign
exchange effect
year over year
change % (3%)
(1) According to App Annie.
(2) "Gross bookings from games other than Candy Crush Saga" represents total gross bookings (including Candy Crush Soda Saga) less gross bookings from Candy Crush Saga.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/king-reports-fourth-quarter-and-full-year-2015-results-300219027.html
SOURCE King Digital Entertainment plc
