SBC News Zynga posts $63 million net loss

Zynga posts $63 million net loss

donmattrick
Don Mattrick – Zynga CEO

San Francisco social games and gambling developer Zynga reported second quarter operational net losses of $63 million (£37 million), an increase of  75% on the 2013 corresponding period.

The significant losses in revenues has caused Zynga senior management to lower corporate and financial expectations for the social gaming developer.

Zynga Q2 operational report saw the company post revenues of $153 million (£91 million), down 34% on corresponding 2013 figures.

New Zynga CEO, Don Mattrick, appointed at the start of 2014 commented on company performance

“While our quarterly financial results were in line with our guidance range, we aspire to do better and improve execution across our business”

“Inside Zynga, we recognize that our products have the potential to live for multiple years and with nurturing, refinement and investment, they can grow and scale. We are purposefully competing, and while we would like to be further along, we believe we are making the right decisions to grow our business and unlock long-term shareholder value.”

Zynga outlined that it would be looking to strengthen it position in the mobile gaming sector, with new social games expected to be rolled out in the coming months. The developer also pointed to new partnerships with US Professional sports Associations such as the NFL.

Nevertheless the news of the developers performance saw its stock price dive by 7% to  $2.69 per share.

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