Feeds

Zynga banks fluke profit - won't happen again, says CEO

Gimme more time, says chief in Q2 woe forecast

Boost IT visibility and business value

Top dogs at Zynga say the online gaming firm just needs a little more time to turn around its losing streak - after forecasting worse losses than expected for this year's second quarter.

The struggling FarmVille maker managed to scrape together a surprise profit for the first three months of this year after cutting costs, but it has lost nearly a third of its monthly unique paying players (MUPs) since the same period in 2012. It expects to lose between $26.5m and $36.5m in Q2 2013.

"[This year] remains a transition year and we continue to expect uneven, non-linear results," chief exec Mark Pincus admitted in a conference call with analysts (full transcription available on Seeking Alpha).

"This reflects the challenging environment on the web and our need to execute more consistently on new game development, similar to what you’ve seen us do with FarmVille 2."

Zynga came up with earnings of one cent-per-share; not very much dosh for shareholders, but better than the four cent-per-share loss that analysts were expecting. However, the company reckons it will lose between three and five cents a share this quarter.

The San Francisco-based firm, which also makes the popular Words with Friends Scrabble clone interactive board-based word game, clawed its way up to $4.1m in net income last quarter, compared to an $85.3m loss in Q1 2012, on revenues of $263.6m.

The firm's stocks have lost two-thirds of their value since spring of last year as its dependence on Facebook and lack of presence on mobile continue to look like shaky foundations for ongoing profits.

Management continues to insist that an upturn is just around the corner, however, supplied by a move onto mobile devices and into "real-money gaming" - or in plain language, gambling.

"We’re excited about the entire category of the social casino, from poker to the growth we’re seeing in other parts of free, like Slots and Bingo and integrated casinos; especially on mobile where we are seeing a very broad market for a range of products and a fairly broad audience," Pincus told analysts.

However, he admitted that that there were "regulatory obstacles that we can't predict or control". ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.