Zynga hails record results in Q3, acquires Peak Games studio
Zynga has announced that it achieved its best top-line performance in four years during the third quarter, while the company has also entered into an agreement to acquire Peak Games’ mobile card games studio.
In a quarterly earnings letter, Zynga said that revenue in the most recent quarter amounted to $224.6m (€193.7m), which is up 23% on the corresponding period last year and $14.6m ahead of company guidance.
Bookings were also up 9% year-on-year to $213.5m, while mobile user pay hit an all-time high in terms of both revenue and bookings, up 44% and 20% year-on-year, respectively.
Zynga noted that mobile now represents 87% of its total revenue and bookings.
Net income for the third quarter came in at $18.1m, while operating cash flow at the end of the three-month period amounted to $35.1m.
Frank Gibeau, chief executive of Zynga, said: “We had a strong Q3, delivering our best revenue and bookings performance in over four years.
“We delivered significant growth in profitability in the quarter achieving net income of $18.1m; this represents the first time since we went public that Zynga has delivered two consecutive quarters of net income.
“We remain on track to deliver our improved margin goals by the end of 2018 and, over the long-term, we’re focused on achieving margins in-line with our peers.”
Meanwhile, the social gaming company has struck a deal to purchase mobile card game studio from mobile gaming specialist Peak Games.
The deal is worth $100m in cash, with Zynga hoping to close the transaction before the end of the year, subject to customary closing conditions.
Zynga said the acquisition will help to strengthen its casual card game portfolio with the addition of games such as ‘Spades Plus’ and ‘Gin Rummy Plus’.
Monty Kerr, senior vice-president of games at Zynga, said: “We’re excited to welcome the talented team behind Peak Games’ mobile card game portfolio to Zynga.
“The social card games they’ve developed have broad, evergreen appeal to millions of people around the world and build on Zynga’s strong foundation as we continue to grow our card portfolio over the long-term.
“The acquisition will enhance our card-based audience and will be accretive to our near-term margin goals.”
Omer Inonu, strategy director at Peak Games, added: “We are proud of what Peak Games has accomplished in growing its leading mobile board and card game portfolio and are confident that Zynga will be a great home for those games and the talented team behind them in the next stages of their growth.”
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