Zynga benefits from mobile boom
Social gaming firm Zynga has posted full-year profits for the first time in seven years thanks to record mobile revenue.
In its annual results for the 2017 the company, which is led by former EA head of mobile Frank Gibeau, said revenue reached $861.4m, which was up 16% on the previous year.
Mobile accounted for 86% of the total revenue, up from 77 per cent last year, with ‘Words With Friends 2’ and ‘CSR Racing 2’ among its success stories. Zynga’s mobile revenue rose 32% to $203.6m in the first full year under CEO Gibeau’s stewardship.
The company reported bookings of $223.8m for the three months to December 31, well above the $213.9m estimated by analysts. It said it delivered its strongest quarterly topline performance since Q1 2013, the heyday of its pioneering Farmville titles.
Zynga saw daily active users up 24% year-on-year to 20 million by the end of the quarter - the highest in four years. Monthly active users enjoyed 45% growth year-on-year, ending 2017 at 76 million.
“In 2017, we improved the fundamentals of our business and drove substantial growth across our topline, audience, profitability and operating cash flow,” the company said in a statement.
“We’re starting 2018 with the strongest mobile game portfolio in company history, and we’re excited about the new titles we have in development across our global studios.
“Our performance and execution over the last year gives us confidence in our ability to grow the company and achieve our near-term margin goals later this year.”
Related article: Zynga launches ‘Words With Friends 2’