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Less Than Half of King's Revenue Is Coming From Candy Crush, and Wall Street Loves It

Shares up more than 18 percent after hours.

King / Candy Crush Saga

Candy Crush Saga maker King beat Wall Street’s expectations in the quarter that ended in December, and said today that its best-known game no longer represents the majority of its revenue.

The free-to-play gaming company turned in fourth-quarter sales of $586 million, versus the $520 million expected by the Street. Profits were $184 million, or 57 cents per share, compared to an expected 47 cents.

A one-time $300 million dividend will be paid out to shareholders in March, King said.

The company also raised its outlook for the current quarter, saying it expected sales between $575 million and $600 million, though it warned that the two following quarters would be softer.

King shares skyrocketed after hours, up more than 18 percent to $17.58 at the time of this writing.

Although Candy Crush is still the biggest single game in King’s portfolio, representing 45 percent of that revenue, three months ago that share was 51 percent. A little more than a year ago, it was 85 percent.

King also announced that it had acquired Seattle-based gaming company Z2Live for $45 million in cash up front, with an additional $105 million promised if the company can meet certain goals. Z2Live will be King’s first U.S.-based games studio; it makes mobile games such as Battle Nations and Paradise Bay.

This article originally appeared on Recode.net.