Zynga shares take a hit as player ranks shrink (Update)

Apr 24, 2013
The Zynga logo is displayed on the front of the company's former headquarters on December 9, 2011 in San Francisco, California. Zynga shares fell on Wednesday after the pioneering social games firm hit quarterly earnings targets but revealed the number of players had ebbed.

Zynga shares fell on Wednesday after the pioneering social games firm hit quarterly earnings targets but revealed the number of players had ebbed.

Zynga reported that it made $4.1 million on revenue of $263.6 million in the three months that ended on March 31, while Wall Street analysts had expected the company to register a slight loss.

Investors soured on the San Francisco-based firm's shares, however, with word that the number of people playing Zynga games daily had dropped 21 percent to 52 million when compared to the same period a year earlier.

The number of active monthly users of Zynga games fell 13 percent to 253 million.

"2013 will continue to be a transition year as we face the challenging environment on the Web and invest in developing the leading franchises and network across web and mobile platforms," said Zynga chief executive Mark Pincus.

Zynga shares fell more than eight percent to $3.08 in after-hours trades that followed release of the earnings figures.

The company has been pulling the plug on unpopular games and investing in titles for play on smartphones or tablets, as well as its own online arena at zynga.com.

Zynga rose to stardom by tailoring games for play by friends on Facebook.

The company has also made moves into real-money gaming with the potential to generate windfalls from popular titles such as Zynga Poker.

Explore further: EU Parliament votes to break up Google

add to favorites email to friend print save as pdf

Related Stories

Zynga to report 3Q net loss, take charge

Oct 04, 2012

(AP)—Zynga expects a loss for the third quarter and says its preliminary results reflect weak demand for some games. It's also taking a charge related to its acquisition of OMGPop, a mobile game maker.

Game sales strong for EA but outlook hurts shares

May 11, 2010

(AP) -- Video game publisher Electronic Arts Inc. said Tuesday that strong sales of games such as "Battlefield: Bad Company" and "Mass Effect 2" gave the company a quarterly profit above expectations. But its outlook fell ...

Zynga posts 4Q net loss on IPO-related stock costs

Feb 14, 2012

(AP) -- Online game maker Zynga Inc. reported a net loss in the last three months of 2011, weighed by hefty stock-compensation expenses and other costs in its first quarter as a public company.

CenturyLink 3Q net income falls as expenses rise

Nov 02, 2011

(AP) -- Phone company CenturyLink Inc. says its third-quarter net income fell as rising operating expenses related to its April acquisition of larger phone company Qwest overshadowed increased revenue.

EBay 1Q revenue grows but falls below estimates

Apr 17, 2013

EBay grew its earnings and revenue in the first quarter thanks to growth in its PayPal business and its e-commerce sites. But revenue fell shy of Wall Street's expectations, causing investors to send the company's stock lower ...

Groupon stock falls after 3Q results fall short

Nov 08, 2012

(AP)—Groupon, the No. 1 online deals service, says it had a small loss in the third quarter as higher revenue failed to make up for stock compensation and other expenses.

Recommended for you

EU Parliament votes to break up Google

7 hours ago

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

12 hours ago

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.