Candy Crush

The creator of Candy Crush Saga, King Digital Entertainment, posted second-quarter earnings that missed expectations

Investors are souring to the maker of Candy Crush Saga after the company reported a disappointing second quarter and scaled back its targets for the rest of the year.

Online game publisher King Digital Entertainment said Wednesday that sales rose 30 per cent to $593.6 million, but that was still far short of analysts' expectations of $605 million.

Users are also not buying up as many bonbons as they used to. Gross bookings — or the amount users spend on virtual items — fell 5 percent from the first quarter.

Stock melts in after-hours

The company's stock was down more than 20 per cent to about $14 a share in after-hours trading on the news.

King Digital went public in March at $22.50 a share. Since then, the stock has only closed above that IPO price once.

Investors have questioned whether King Digital is a one-hit wonder with its Candy Crush app, and can't enjoy similar success with its other games like Pet Rescue and Farm Heroes. King plans to launch a follow-up called Candy Crush Soda globally this fall.