Michael Acton Smith, Mindy Candy's chief executive officer, is about to step down as reports circulate that traffic to the company's prized gaming property has gone down 53% in the last year up to June, and may impact revenues which in 2012 was at £46.9 million (US$80.3 million).

Instead of spending his time on a daily basis running the company, Acton Smith said he wanted to focus his attention now on a more creative role.

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He has been running the Mindy Candy for 10 years now.

Mindy Candy's current chief operating and financial officer Divinia Knowles will replace Acton Smith as president; a new CEO may be announced on a later date.

Mindy Candy is the company behind Moshi Monsters, a social network designed for children.

Moshi is considered as one of the world's popular social networks for children and has attracted some 80 million children users.

The child's social network operates via paid subscriptions but affiliated merchandise – music albums, plush toys and the like – makes up for half of the company's earnings.

Mindy Candy has not yet adapted the "freemium business model which gives away products for no particular reason, but persuades people to make small payments on applications or other types of game.

Knowles says her main role is to raise the profile of their other products like World of Warriors which caters to older children, and PopJam which focuses on a creative community for kids.

Speaking to BBC, Knowles said, "Moshi has been absolutely amazing. But Mindy Candy has gone from being a one-product company to multiple products. The business now is much more complex than it used to be." 

One of the major challenges that the company wants to overcome is widening its international reach; Knowles said that Moshi is doing well in the U.K. but not as well in the United States.

TagsMoshi Monsters, Mindy Candy, social network for children, Social network