Subscribe free to our newsletters via your
. Space Industry and Business News .

Zynga bets on mobile and gambling games
by Staff Writers
San Francisco (AFP) Oct 24, 2012

Zynga's beleaguered stock was boosted on Wednesday by an earnings report that beat expectations and an opening ante into real-money casino games in Britain.

Zynga reported it lost $52.725 million on revenue of $316.637 in the quarter that ended on September 30 but was so confident in its future that it planned to repurchase $200 million worth of its shares.

The San Francisco-based social games pioneer also announced a partnership with real-money gaming (RMG) operator to run poker, roulette, blackjack and other virtual casino games in Britain.

"Partnering with an established leader like is a strategic and prudent way for us to enter a key RMG market while giving local players the real money games they've been asking us for," said Zynga executive vice president Barry Cottle.

Players of Zynga poker in Britain will be able to take part in the regulated game network, according to Zynga. The partners expected to have a suite of 180 Casino games in Britain by the middle of next year.

"Zynga is the world's leader in social games with hundreds of millions of active players worldwide and a significant player base in the UK," co-chiefs Jim Ryan and Norbert Teufelberger said in a release.

"We are delighted to have been selected as their chosen partner for this important step in their evolution, and hope to expand our relationship into other products and markets."

Zynga shares rose more than 13 percent to $2.42 in after-market trading.

Revenue for the first nine months of this year was up 17 percent to $970 million compared to the same period in 2011, according to Zynga.

The number of people playing Zynga games each month climbed to 311 million in a 37 percent increase from the same quarter a year earlier, Zynga reported.

"While the last several months have been challenging for us, Zynga remains well positioned to capitalize on the growth of social gaming," said company chief executive and co-founder Mark Pincus.

"It's more clear than ever that along with search, shop and share, play is a fundamental pillar of the Internet."

Pincus stressed that Zynga was implementing "a number of steps to drive long-term growth and profitability."

On Tuesday, Zynga began trimming workers, shuttering studios and shelving older titles to get in financial shape for the long term.

Zynga will be "parting ways" with five percent of its approximately 3,300 full-time workers and dump 13 games, along with significantly cutting its investment in "The Ville" franchise, according to Pincus.

The company will close its studio in Boston and trim its team in the Texas city of Austin. Zynga is also proposing to close studios in Japan and Britain.

"We don't take these decisions lightly as we recognize the impact to our colleagues and friends who have been on this journey with us," Pincus said in an internal memo, a copy of which was provided by Zynga to AFP.

"This is the most painful part of an overall cost reduction plan that also includes significant cuts in spending on data hosting, advertising and outside services, primarily contractors."

The cost-cutting moves are intended to let Zynga focus on more promising games and ramp up its network on the Web and on mobile devices.

Zynga shares plunged early this month after the company behind social games such as "FarmVille" cut its earnings forecast for the year.

The company cited the shifting loyalties of players along with delays in releasing new titles as among the causes for reducing its revenue expectations.

"We found it more challenging to keep players," Pincus said during an earnings conference call. "We weren't able to bring new games to market fast enough to offset this decline."

Zynga rose to stardom by tailoring games for play by friends on Facebook and went on to create its own online playground at

The booming popularity of playing games on smartphones or tablet computers took a toll on Zynga's online social network offerings, prompting the company to make shifting to mobile a top priority, according to Pincus.

"Mobile is the next major growth opportunity for Zynga," he said, noting that all the company's game teams have been reconfigured to craft titles for both mobile gadgets and the Web.

Zynga also planned to begin testing a "With Friends" mobile game network in the coming week.


Related Links
Space Technology News - Applications and Research

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Zynga stock jumps despite earnings loss
San Francisco (AFP) Oct 24, 2012
Shares in social gaming pioneer Zynga jumped more than 14 percent on Wednesday with a quarterly earnings report that revealed a loss and a plan to buy back stock. Zynga reported that it lost $52.725 million on revenue of $316.637 in the quarter ended September 30 and that it planned to repurchase $200 million worth of its shares. The San Francisco-based firm's shares rose to $2.43 on the ... read more

Zynga bets on mobile and gambling games

Microsoft goes mobile with Windows 8, new tablet

Lockheed Martin Foliage-Penetrating Reconnaissance Radar Integrated with System to Detect Slow Moving Objects

Orbital Awarded Contract by USAF For EAGLE Spacecraft Platform

Raytheon awarded contract from US Army to produce and upgrade airborne radios

ONR to Dial Up Faster Data for the Marines

$15M order for Harris tactical radios

SPAWAR Atlantic taps Engility

S. Korea readies third bid to join global space club

Brazil eyes closer space cooperation with Ukraine

S. Korea plans third rocket launch bid Friday

AFSPC commander convenes AIB

Trimble Adds Boom Height Control to its Field-IQ Crop Input Control System

New INRIX Traffic App for Android Provides Relief from Soaring Gas Prices

Pittsburgh Parks Conservancy to Develop Mobile Application for Parks

Runzheimer International Launches 2012 Total Employee Mobility Survey

Hawker signs New Zeland King Air deal

Iraq to pay $500 mn airline settlement by mid-2013: Kuwait

Embraer expands in African aviation market

Chinese HNA buys into French airline, steps into Europe

Quantum computing with recycled particles

Boeing, Samsung Electronics to Explore Joint Technology Research and Development

Breakthrough offers new route to large-scale quantum computing

Bus service for qubits

Rapid changes in the Earth's core: The magnetic field and gravity from a satellite perspective

Landsat Science Team to Help Guide Next Landsat Mission

TerraSAR-X images Bonneville salt flats

Earth Observation Commercial Data Market Remains Strong Despite Slowdown in 2011

EU takes Italy back to court over illegal landfills

New methods might drastically reduce the costs of investigating polluted sites

Pollution row strangles Italian steel giant ILVA

S. Korean villagers evacuate after toxic leak

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement