Feeds

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

Gimme more time, says chief in Q2 woe forecast

Security for virtualized datacentres

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". ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.