US web and mobile game publisher Zynga (NASDAQ:ZNGA) has announced its FY14 financials, for the 12 months ending 31 December 2014.
This was the first year that included revenue from acquisition NaturalMotion.
GAAP revenue was $690 million, down 21 percent compared to 2013.
Zynga made a loss of $45 million, compared to a loss of $37 million during 2013.
The company ended the quarter with cash and short-term securities worth $1.15 billion.
Mobile majority
"2014 was a year of progress for Zynga - we came together as one team and applied more discipline and rigor to our business," said CEO Don Mattrick.
"In the fourth quarter, we increased mobile bookings to 60% of our total bookings mix, expanded our mobile audience with monthly mobile consumers up 87% year over year, and grew our core franchise bookings by 35% year over year,"
Indeed, looking at Q4, revenue was $193 million, up 9 percent year-on-year, although Zynga still made a loss of $2.5 million.
That compares to a loss of $21 million in Q4 2013.
Mobile bookings were up in Q4 by 120 percent year-on-year and 14 percent quarter-on-quarter.
Zynga had 80 million monthly active players in Q4, compared to 28 million monthly active web players.
Being bold
Given the weakness of F2P on web, becoming more mobile is a key goal for Zynga during 2015.
Mobile bookings represented 60 percent of total bookings during Q4, up from 34 percent in Q4 2013.
Mattrick commented that Zynga would "deliver a 100 percent mobile-first new product slate featuring new games, with a goal of ending 2015 with more than 75% of our fourth quarter bookings coming from mobile.
"I am excited by the boldness of our 2015 product aspirations - this year we expect to launch between 6 to 10 new games in important categories like match-3 and action strategy."
The company also announced it was closing down its China studio with the loss of 71 jobs. The move will save Zynga $7 million a year in costs.
Fewer players
However, a key problem for Zynga to address as it goes mobile is the continued decline of its audience.
Monthly active players were down 4 percent quarter-on-quarter to 108 million, daily actives were down 4 percent to 25 million, and monthly unique payers were down 15 percent to 1.1 million.
The only good news is that average daily bookings per average DAU is up, 8 percent quarter-on-quarter to $0.08.
[source: Zynga]
Comments
Login to to leave a comment Or click here to register
Forgot password?
Password Reset
To reset your pass, please enter your email below and submit. Your new password will then be emailed to you.
You can change this pass at any time on the "edit profile" link when logged in.
Got your password?