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Zynga sees FY13 Q3 revenue down 36% to $203 million

Losses narrow but pain set to continue

Zynga sees FY13 Q3 revenue down 36% to $203 million

Social gaming company Zynga (NASDAQ: ZNGA) has announced its Q3 FY13 figures for the three months ending 30 September 2013.

Revenue was $203 million, down 36 percent year-on-year.

The company made a net loss for the quarter of $68,000, a big improvement on the $53 million loss it recorded in Q3 2012.

Green shoots?

For the nine months of its 2013 financial year to-date, Zynga's total sales are $697 million, down 28 percent year-on-year.

Its loss for the same period is $11.7 million, compared to a loss in the first nine months of FY12 of $161 million.

"I am pleased with our Q3 performance which exceeded our guidance both in terms of bookings and adjusted EBITDA," commented Don Mattrick, who was appointed CEO in July 2013.

"We are encouraged to see sightlines to growth and expect to be profitable for the full year on an adjusted EBITDA basis.

"I am confident that Zynga is rewiring itself in a meaningful way that will strengthen the core of our business and put us back on track to achieve significant long term growth and profits."

Old bankers

The company highlighted the fact it continues to have three of the top 10 most active games on Facebook -FarmVille 2, Zynga Poker and Words With Friends.

More generally, its top 3 games by revenue - FarmVille 2, Zynga Poker and FarmVille - accounted for 59 percent of the company's game revenue during the quarter.

Slipping down life

The company's user numbers continue to drop, however.

It had 16 million daily active players on the web and 14 million daily active mobile players during Q3, but its combined total of 30 million was down by 49 percent year-on-year and 23 percent quarter-on-quarter.

Zynga had 82 million monthly active players on the web and 51 million on mobile during Q3; its unique monthly player total is now 97 million.

Its unique monthly payers total was 1.6 million, down 46 percent year-on-year.

Cash in hand

Zynga expects to post Q4 sales in the range $175 million to $185 million.

It also predicted a loss in the range $21 million to $31 million.

It ended the Q3 quarter with $1.52 billion in cash, cash equivalents and marketable securities.

[source: Zynga]

Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.