Zynga lose $61m
Social game developer Zynga made a $61.2m loss in the first quarter of 2014 after a fall in revenue.
The company behind Zynga Poker and Farmville, who registered a net income of $4.1m for the same period in 2013, reported Q1 2014 revenues of just over $168m, a 5% drop from the last quarter of 2013 and a 36% decrease from Q1 2013.
This was largely due to a 42% year-on-year decrease in online game revenue. Advertising and other revenue, on the other hand, was up 5% year-on-year and 49% quarter-on-quarter.
Zynga CEO Don Mattrick said: “In Q1 our teams delivered a solid start to the year against our strategic frame of growing and sustaining our franchises, creating new hits and driving efficiencies. We have established a strong base for 2014 and believe we are pacing well for a year of growth.”
Nevertheless Zynga predicts that it will lose even more next quarter, around $70m, because of another projected drop in revenue.
On the bright side though, Zynga Poker achieved sequential quarterly growth in bookings for the first time in seven quarters. It increased its mobile audience by 19%, the strongest growth in two years.
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