Zynga is losing revenue and predicts a decline in annual profit
Zynga is trying to regain its position in the mobile market, but this may take additional time, the company says in its financial report for the second quarter.
The San Francisco-based company reported revenue of $175 million for the quarter that ended in June. This is 6.6% less than last year and below the $191 million forecast by analysts. The company also lowered its expected net annual profit to $85 million, and expects annual revenue to be between $695 million and 725 million.
Zynga shares fell in price by 9% immediately after the close of trading.
For the first time, the company's revenue in the mobile market surpassed revenue from online games on Facebook and Zynga.com . The number of monthly active users increased by 34% compared to the previous year, which is most likely due to the launch of Farmville 2: Country Escape.
The mobile version of Farmville has repeatedly appeared in the top 20 best-selling iPad games in the American App Store, according to the analytical company App Annie. Nevertheless, it has still not overtaken its main competitor Supercell's Hay Day, which is among the top ten games.
The games that the company planned to release in the spring and summer – including the relaunched versions of Zynga Poker and Words With Friends – will be postponed until late 2014 or early 2015. Meanwhile, Zynga has announced a collaboration with the NFL and Warner Bros.: a football game with real players and an endless runner in the style of Stampede Run featuring Looney Tunes characters are being prepared for creation.
The development of the NFL game at Zynga Studios in Orlando, Florida, will be led by Mike Taramykin, an eight-year veteran in EA Sports game development. He also took part in the adaptation of the lucrative Madden franchise for Facebook. While working for EA, Tamarykin also oversaw the Woods PGA Tour franchise, which hired Woods (Tiger Woods) as its mascot in late 2013. Zynga also signed a contract for exclusive cooperation rights with Woods: he will become the face of a new golf simulator that is being developed in Orlando.
A source: http://recode.net
Zynga is a pioneer company in the social gaming market. It was founded in 2007. She earned her start-up capital at Texas Hold'em Poker (now Zynga Poker). In 2008, she raised an investment of $ 29 million, which allowed her to acquire MyMiniLife, which at that time had just graduated from time manager Farmville. In 2011, Zynga successfully entered the IPO, raising more than $1 billion during the placement of shares. Then the company continued its policy of acquiring promising companies. This led to a severe drop in income. As a result, in the summer of 2013, the founder of the company, Mark Pincus, resigned as CEO, giving way to the former head of Microsoft's entertainment division, Don Mattrick.
