Zynga’s net loss decreased by US$4.1m between the third and fourth quarters of 2012, from US$52.7m to US$48.6m respectively, and drew flat Q4 revenue of US$311.2m as it cut jobs, shut studios and closed down underperforming games, such as CityVille 2.
The maker of online social games is also planning to axe Facebook game The Friend Game and iOS game Party Place.
Zynga’s net loss for 2012 totalled US$209.4m on revenue of US$1.28bn, an improvement over the loss of US$404.3m on revenue of US$1.14bn in 2011.
Compared to the fourth quarter of 2011, the company reported flat revenue for Q4 2012 of US$311.2m.
Bookings, which are the measure of the value of virtual goods sold within games, fell to US$261.3m from US$306.5m from 2011.
The number of people playing Zynga’s games during the fourth quarter also decreased, by 4pc, to 298m monthly active users, 72m of whom were mobile users. Monthly active users in the third quarter amounted to 311m.
Zynga’s bumpy 2012
Zynga went public in December 2011, five months before social networking giant Facebook. Then Zynga’s stocks fell right along with Facebook’s stocks, and demand for Zynga’s games decreased, as well.
In October, during an Apple press event, Zynga shed 5pc of its workforce. The company also shut down 13 older games and closed its Boston studio, with plans to also shutter studios in Japan and the UK.
Zynga’s COO David Ko said 2013 will be a pivotal transition year for the company.
“We are focused on achieving three strategic objectives: growing our franchises on mobile and web, expanding our network and maintaining profitability on an adjusted EBITDA basis,” Ko said.
“With 298m monthly average users, including 72m on mobile alone, Zynga already has the largest social gaming audience and remains the best-positioned company to lead in building the future of social gaming.”