Zynga Predict Q2 Decline
Zynga has posted a first quarterly profit since it became a listed company, and this comes despite showing a decline and players and revenue numbers fall. The social gaming giant posted figures of $4 million net income which compared to the $85 million in losses for the same period last year is quite some change. This see the company return to profit after a full year of posting losses. The three months ending March 2013 however saw revenues fall around 18% from the same period last year. Daily active users have also fallen. Revenues have predominantly come in via in game streams while advertising revenue has dropped considerably, up 21% year on year but down 8% quarter on quarter. These figures by some are being taken lightly and it has only been a short time since Zynga launched it's first real money gaming products, ZyngaPlusPoker and ZyngaPluscasino and whislt no figures have been released regarding the real money venture, hopes are high for them. In their own words, this is just the first step of "realizing the company's long term vision of bring players the next generation of real money games on multiple platforms in regulated markets."
Regarding Zynga's online exploits, other operators have already stated that they do not fear the competition of them entering the real money market, and we are a long way off finding out whether there attitude towards this is justified. Mark Pincus, Zynga CEO commented on the plans for the company by saying they intend to, "invest in developing the leading franchises and network across web and mobile platforms." There's also a cross platform development initiative at the moment and Pincus warned that 2013 would be another transitional year regarding that. The upshot of all of this is that Zynga predicts losses in the second quarter of 2013 and admit that this may continue, with Pincus predicting "uneven, non-linear results." Mobile will remain the company's key focus and that growing market is key to Zynga.