Feeds

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

Gimme more time, says chief in Q2 woe forecast

Secure remote control for conventional and virtual desktops

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". ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?