Zynga sees FY13 sales down 32% to $873 million

But losses narrow to $37 million

Zynga sees FY13 sales down 32% to $873 million

Social gaming company Zynga (NASDAQ: ZNGA) has announced its FY13 figures for the 12 months ending 31 December 2013.

Revenue was $873 million, down 32 percent year-on-year.

The company made a loss of $37 million, compared to a loss of $209 million 12 months ago.

Dog in the red

Zynga announced it was cutting a further workforce reduction of 15 percent or 314 jobs; something that will save it between $33 to $35 million in 2014.

It also announced the acquisition of UK developer NaturalMotion in a cash and shares deal worth $527 million.

The deal will boost Zynga's headcount by 260.

"Our acquisition of NaturalMotion will allow us to significantly expand our creative pipeline, accelerate our mobile growth and bring next-generation technology and tools to Zynga that we believe will fast track our ability to deliver more hit games," said Zynga CEO Don Mattrick.

"Their creative portfolio aligns perfectly with our content strategy as Zynga will now have five top brands and capabilities in the Farm, Casino, Words, Racing and People categories. "

Not so bleak house

As for a more general approach on the coming year, Mattrick said he expected "2014 to be a growth year".

"We believe that Q1 will be a solid foundation for that growth and we expect substantial improvements for the remainder of the year across audience, bookings and Adjusted EBITDA," he added.

The company pointed to a 33 percent sequential quarterly growth in revenue from Words With Friends, and sequential quarterly growth from Zynga's Casino games for the first time in 18 months as bright spots.

The company ended the year with cash, cash equivalents and marketable securities worth $1.54 billion, although it's spending $391 million of this on the NaturalMotion deal.

[source: Zynga]

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A Pocket Gamer co-founder, Jon is Contributing Editor at 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.