Zynga Gambling on Poker as Profits Dip?
Web game maker turns to gambling as revenues rise but profits fall
Farmville and Words With Friends maker, Zynga - which as experienced meteoric growth since it began life in 2007 - is turning to online gambling in the face of a second financial quarter that leaves much to be desired.
In an official statement off the back of its figures for the quarter ending June 30th 2012, the company states that it:
"...achieved some significant milestones in the quarter including the launch of Bubble Safari, which is now the number one arcade game on Facebook, and the launch of The Ville, now the number two game behind Zynga Poker."
It spins this out stating that, "Our advertising business continued to show strong growth with revenue up 170% year-over-year. Our games reached record audiences, achieving over 300 million monthly active users. We grew our mobile footprint five-fold in the year to 33 million daily active users making Zynga the largest mobile gaming network."
Mark Pincus CEO and Founder of the company does, however, state that, "We also faced new short-term challenges which led to a sequential decline in bookings. Despite this, we're optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web."
These "new short-term challenges" are summed up in the figures. In the same quarter last year Zynga's revenues were $279,144, that compares to this year's $332,493. Looks good. But what of actual profits?
The period ended June 30th 2011 saw a net profit of $1,391,000. This time around there is a loss of £22,811,000. The sixth month period ending June 30th 2011 saw Zynga making $18,149 from revenue of $522,034,000. This time around, $653,465,000 revenue "earned" a loss of $108,162,000.
Source: Zynga
In an official statement off the back of its figures for the quarter ending June 30th 2012, the company states that it:
"...achieved some significant milestones in the quarter including the launch of Bubble Safari, which is now the number one arcade game on Facebook, and the launch of The Ville, now the number two game behind Zynga Poker."
It spins this out stating that, "Our advertising business continued to show strong growth with revenue up 170% year-over-year. Our games reached record audiences, achieving over 300 million monthly active users. We grew our mobile footprint five-fold in the year to 33 million daily active users making Zynga the largest mobile gaming network."
Mark Pincus CEO and Founder of the company does, however, state that, "We also faced new short-term challenges which led to a sequential decline in bookings. Despite this, we're optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web."
These "new short-term challenges" are summed up in the figures. In the same quarter last year Zynga's revenues were $279,144, that compares to this year's $332,493. Looks good. But what of actual profits?
The period ended June 30th 2011 saw a net profit of $1,391,000. This time around there is a loss of £22,811,000. The sixth month period ending June 30th 2011 saw Zynga making $18,149 from revenue of $522,034,000. This time around, $653,465,000 revenue "earned" a loss of $108,162,000.
Source: Zynga
Companies:
Zynga
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