Candy Crushed: shares tumble on news of game's sinking popularity

King Digital reported last year that 97 million people were playing Candy Crush every day. Photograph: Carlo Allegri/Reuters

Shares in the video games maker King Digital lost close to a quarter of their value on Tuesday after it reported declining popularity for its phenomenally successful Candy Crush Saga.

Reporting after the stock markets closed, the company said gross bookings for the quarter - a measure that tracks how much users pay for virtual items and other goodies on its games - fell to $611.1m from $641m in the previous quarter.

The 5% fall was driven largely by a drop in revenues from Candy Crush, the mega hit that accounts for some 60% of its gross revenues.

On a conference call with investors, King chief executive officer Riccardo Zacconi said the fall was due to a 'step down in monetization across our network' including its other hits Farm Heroes Saga and Bubble Witch.

Candy Crush's bookings peaked in the third quarter of 2013 and the rate of decline picked up at the end of the last quarter, he said. He said the company expected the slowdown to continue.

Investors sold the stock in after-hours trading and King's shares initially slumped close to 24%. King's shares have had a rocky ride since the company went public in March at $22.50 a share, valuing the firm at $6bn. Before the latest results they were trading at $18.20.

Last year the company reported some 97 million people were playing Candy Crush every day. The company reported nearly $1.9bn in revenue in 2013, compared with just $164m in 2012, driven almost entirely by the players buying virtual goods in Candy Crush.

Zacconi said the company had 'a strong and expanding portfolio of games' and had 'demonstrated our ability to produce high quality games'. The company cut its 2014 outlook and declared a $150m special dividend.