Facebook and mobile game publisher King (NYSE:KING) has announced its FY14 Q2 financials, for the three months ending 30 June 2014.

Revenue was $594 million, up 30 percent year-on-year, but down 2 percent quarter-on-quarter.

Profits were $165 million, up 31 percent.

Cash out

King generated $162 million during the quarter in terms of net cash flow and ended the period with cash and equivalents of $832 million.

Given that level of cash generation, and pressure on the company's stock - which remains under its IPO price of $22.50 - King announced it would pay shareholders a special dividend of $150 million.

"While our second quarter gross bookings came in below our expectations leading us to reduce our outlook for full-year 2014 growth rates, from a profitability perspective, the business continued to perform well, delivering adjusted EBITDA margins of 42% and generating healthy cash flows of $154 million to boost cash and cash equivalents to more than $800 million," said King CEO Riccardo Zacconi.

"Based on the cash generative strength of our business, we are pleased to announce a special dividend of $150 million to enhance returns for our shareholders."

Peak Candy?

In terms of player numbers, King has 138 million daily active players, down 2 percent quarter-on-quarter, and 485 million monthly active players, up 1 percent quarter-on-quarter.

10.4 million players bought IAPs on a monthly basis, down 12 percent quarter-on-quarter, with monthly gross average bookings per paying user of $19.54.

During the quarter, King launched eight new games on its own royalgames.com and Bubble Witch 2 Saga and Pyramid Solitaire Saga on Facebook and mobile platforms.

The result is that King has diversified its portfolio with Candy Crush Saga accounting for 59 percent of sales compared 67 percent in the previous quarter.

However, it reduced its financial outlook for 2014, in part because of a decline of Facebook activity.

[source: King]