Zynga's (NASDAQ: ZNGA) business is being squeezed on both sides, with slowing demand for the firm's Facebook games and a decline in the potency of proven mobile hits such as Draw Something driving profits down.
The social gaming giant posted a $22.8 million net loss in Q2 2012 down from a net profit of $1.4 million during the same period in 2011 despite a 19 percent rise in revenue to $332.5 million.
Audience on the up
Indeed, across its entire business, the number of users Zynga is pulling into its titles is on the rise, with the firm registering 72 million daily active users across the quarter up from 59 million during Q2 2011.
Monthly active users are up too, rising from 228 million during the same period in 2011 to 306 million in the latest quarter.
"Our games reached record audiences, achieving over 300 million monthly active users," said CEO and founder Mark Pincus, also drawing attention to a 170 percent jump in Zynga's advertising revenues.
We grew our mobile footprint five-fold in the year to 33 million daily active users making Zynga the largest mobile gaming network.
"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."
Draw Something droops
Zynga's desire to switch focus from Facebook to mobile is well documented, though the company claims web-games as a whole are losing popularity faster than it had expected, resulting in the firm's net loss.
That's a theme that looks set to continue throughout the rest of 2012.
We are lowering our outlook to reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something, detailed Zynga in its financial report.
In all, Zynga has $1.6 billion in cash, cash equivalents and marketable securities up from $1.5 billion at the end of March.
[source: GlobeNewswire]
News
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.
Related Articles
News
Feb 13th, 2024
Mobile revenue exceeds Take-Two’s expectations, making over $2 billion in nine months
Top Stories
News
May 31st, 2024
Week in Views - Squad Busters goes global, broken app stores, and Hill Climb Racing gets the LEGO treatment
News
May 31st, 2024
Mobile Movers: All the latest appointments and job moves from around the industry
Events
Indie Game Fest & Indie Campus 2024 | Europe | May 31st |
Indie Craft K-Game Festival 2024 | Europe | May 31st |
BostonFig Online 2024 | Jun 1st | |
GameSummit Summer 2024 | Jun 1st | |
Gotland Game Conference 2024 | Nordic | Jun 3rd |
Games Mental Health Summit 2024 | Europe | Jun 3rd |
Dev Play Conference 2024 | Europe | Jun 3rd |
Tribeca Games Festival 2024 | North America | Jun 5th |