Another three months of pain as Zynga sees FY14 Q2 revenues down 34% to $153 million

Signs NFL, Tiger Woods and Looney Tunes licences

Another three months of pain as Zynga sees FY14 Q2 revenues down 34% to $153 million

Game publisher Zynga (NASDAQ:ZNGA) has announced its FY14 Q2 financials, for the three months ending 30 June 2014.

Revenue was $153 million, down 34 percent year-on-year.

The company made a net loss of $62.5 million, compared to a loss of $16 million 12 months ago.

Zynga generated $18 million in terms of cash flow from operations, and ended the quarter with cash and equivalents of $1.2 billion.

Mobile better

Looking on the bright side, the company pointed to mobile audience growth of 22 percent quarter-on-quarter in terms of monthly active players.

It has lowered its full year 2014 outlook, however, partly because of the relative failure of new titles such as FarmVille 2: Country Escape and partly because it is delaying some games.

"While our quarterly financial results were in line with our guidance range, we aspire to do better and improve execution across our business," commented CEO Don Mattrick.

"Inside Zynga, we recognize that our products have the potential to live for multiple years and with nurturing, refinement and investment, they can grow and scale.

"We continue to make significant investments in the highest potential areas of our future pipeline. By Q4 of this year, approximately half of our game-related research and development will be allocated to new and recently launched games - this represents about a 45% increase year over year.

The EA playbook

To turn around the situation, Mattrick said the company would be "diversifying its product portfolio in order to reach more consumers and widen our demographic across more entertainment genres."

In this context, Zynga will be entering the sport genre using the Zynga Sport 365 brand, thanks to a multi-year licensing agreements with the National Football League and NFL Players Inc.

Its first release will be management game NFL Showdown.

The company has also signed a deal to make games based on the Tiger Woods brand, but the first one won't be released until 2015.

Finally, Zynga has signed a deal with Warner Bros. to make Looney Tunes games, notably in the runner genre.

Contributing Editor

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.