Zynga records revenue hike in ‘strong’ second quarter
Mark Pincus, chief executive and chairman of Zynga, has stated that the social gaming company was able to deliver “strong” results during the three months to June 30, with the firm also making “significant” progress against various growth opportunities.
Revenue in the second quarter amounted to $199.9 million (€183 million), up from $153.2 million posted in the same period last year.
Net loss was cut from $62.5 million to $26.9 million, while bookings remained relatively flat at $174.5 million.
However, the firm did record a drop in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), which fell from $14.5 million in the second quarter of 2014 to $963,000 in the same period this year.
In addition, non-GAAP net income slumped from a positive figure of $2.8 million last year to a loss of $7.6 million this year.
The Q2 results places Zynga’s net revenue for the six months through to June 30 at $383.2 million, up from $321.3 million last year.
Net loss is down from $123.7 million to $73.4 million, with bookings up slightly to $341.9 million.
Adjusted EBITDA for the first half of the year stands at $3.1 million, down from $28.3 million last year, while non-GAAP net income came in at a loss of $14.3 million, compared to a negative of $3.5 million last year.
“Our teams have been executing well and delivered strong Q2 results while also making significant progress against our best growth opportunities,” said Pincus, who returned to his role as chief executive earlier this year.
“We believe that social gaming has the opportunity to be as important a medium in people's lives as social networking and social media.
“We're excited to deliver on that promise by getting back to our entrepreneurial roots, innovating on game mechanics and leveraging world-class data and analytics to accelerate our path.”
Meanwhile, Zynga has appointed former Electronic Arts (EA) executive Frank Gibeau to its board of directors.
Gibeau previously served as executive vice-president at EA during more than 20 years with the gaming company, supporting the launch of a range of key titles.
Speaking about his appointment, Gubeau said: “Zynga has the products, the people and the powerful plan needed to make its mission to connect the world through games a reality.
“Mark's uncompromising passion for Zynga and commitment to social games is unparalleled; I look forward to partnering with him and my fellow board members during this incredibly exciting time for Zynga and the broader mobile gaming industry.”
In addition, Zynga has announced a new multi-year partnership with Warner Bros. Interactive Entertainment to develop social casino games based on the iconic ‘Willy Wonka and the Chocolate Factory’ brand.
The firm said the first title will come in the form of a branded social slots game, which is due for release across mobile and web in 2016.
Joe Kaminkow, chief game designer for Zynga's social slots, said: “Willy Wonka and the Chocolate Factory is a brand that is adored by generations of consumers and its fantastical and playful nature makes it a perfect fit for the world of slots.”
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