Feeds

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

Gimme more time, says chief in Q2 woe forecast

Bridging the IT gap between rising business demands and ageing tools

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". ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
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
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.