Online and mobile gaming firm Zynga has announced a 23% year-on-year increase in its revenues during the third quarter of 2017, marking the companies’ best performance during the period for four years.
In its third financial filing of the year, the company revealed revenues of $224.6m during the period beating the previous 2016 Q3 revenue total of $182.4m and over $14.6m above company estimates for the period.
Mobile bookings grew 9% year-on-year from $162.3m during Q3 2016 to $213.4m during the same period of 2017, while revenue from mobile jumped to $194.3m to $145.9m year-on-year. The company noted that mobile now represents 87% of its total revenue and bookings, rising 7% from the same period of last year with over 19 million daily active users.
Net income increased to $18.1m during the period, rising by $59.8m year-on-year while operating cash flow increased to $35.1m a year-on-year rise of $14.1m.
In a statement accompanying the results Zynga chief executive Frank Gibeau said: “We had a strong Q3, delivering our best revenue and bookings performance in over four years. We delivered significant growth in profitability in the quarter achieving net income of $18.1 million. This represents the first time since we went public that Zynga has delivered two consecutive quarters of net income.
“Our year-to-date cash flow from operations has more than doubled to $68.2m, up from $32.3m a year ago. We remain on track to deliver our improved margin goals by the end of 2018 and, over the long-term, we’re focused on achieving margins in-line with our peers.”
The company also announced that it has entered into an agreement to acquire Card Games Studio from fellow mobile developer Peak Games for a fee of $100m.
Peak Games is one of the largest mobile gaming companies in the U.S. offering mobile card games such as Spades Plus and Gin Rummy Plus, as well as local Turkish games including 101 Okey Plus and Okey Plus. Zynga have confirmed that the sale will complete later this year.
Announcing the deal Zynga Senior Vice President of Games, Monty Kerr said: “We’re excited to welcome the talented team behind Peak Games’ mobile card game portfolio to Zynga. The social card games they’ve developed have broad, evergreen appeal to millions of people around the world, and build on Zynga’s strong foundation as we continue to grow our card portfolio over the long-term.”
Omer Inonu, Strategy Director of Peak Games added: “We are proud of what Peak Games has accomplished in growing its leading mobile board and card game portfolio and are confident that Zynga will be a great home for those games and the talented team behind them in the next stages of their growth.”
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