From its peak in 2012 with titles such as FarmVille, mobile games giant Zynga is struggling to find a new hit and last night reported losses of US$57.1m in the third quarter, compared to a loss of US$68,000 last year.
The company reported third-quarter revenues of US$176.6m, down from US$202.5m a year earlier.
Zynga reported that online game revenue totalled US$140m, a decrease of 20pc compared to the third quarter of 2013 and an increase of 6pc compared to the second quarter of 2014.
Advertising and other revenue amounted to US$37m, an increase of 32pc compared to the third quarter of 2013 and an increase of 67pc compared to the second quarter of 2014.
FarmVille 2, Zynga Poker and Hit it Rich accounted for 27pc, 22pc and 12pc of online game revenue, respectively, for the third quarter of 2014 compared to FarmVille 2 and Zynga Poker accounting for 32pc and 24pc, respectively, for the second quarter of 2014.
Operation Transformation at Zynga
“Our teams have been working hard over the last year to reshape our business and we are seeing that work show up in two important areas – our franchise bookings and mobile bookings growth,” CEO Don Mattrick said.
“Last quarter, our core franchises – Casino, Words With Friends and FarmVille – grew 30pc year-over-year in terms of bookings, and we achieved meaningful growth in mobile with a 111pc increase in mobile bookings annually.
“We have been operating with purpose and it has taken us some time to transform our business as we faced some execution challenges in the quarter. (The year) 2014 has been an investment year for us as we assembled a new leadership team, reorganised the company and reset our product pipeline.
“As we move forward and aggressively compete in an exciting market, we continue to believe that we are well positioned to take advantage of our global scale and diversified product portfolio, and we remain committed to working together as a team to deliver long-term value for our consumers, employees and shareholders,” Mattrick said.
Zynga image via Shutterstock