Will Wei, Business Insider
King Digital's net income in the second quarter totaled $161.7 million, and the company reported $832.2 million of cash and cash equivalents at the end of the quarter.
So it isn't like the company doesn't have the funds to pay out a dividend, which is worth $0.469 per share outstanding and is payable on September 30, but a large payout from a company that recently went public is a surprising move.
And investors, at least in immediate reaction, have not taken kindly to the announcement.
King Digital also said that, "In addition, the Company's executive officers, directors, founders, and affiliated funds, including Bellaria Holding S.a.r.l of whom Apax WW Nominees Ltd is the sole shareholder, together representing 80% of outstanding shares, have agreed to a new lock up with the Company through the date following the Company's announcement of fourth quarter and full year 2014 earnings."
In the second quarter, the company earned $0.59 per share, which was in-line with analyst expectations. Bookings were also better than expected, coming in at $611 million against expectations for $606 million.
King said bookings would slow in the third quarter, with the company expecting bookings of $500 million to $525 million, with full-year bookings of $2.25 billion to $2.35 billion.
With a decline of more than 23%, King Digital has had more than $1 billion taken off its total market capitalization in just a few minutes after this report.
King Digital's time as a public company hasn't gone the smoothest, with the stock just once closing above its initial offering price of $22.50.