Mon, Sep 26, 2011 | 02:35 BST
Zynga profits nosedive by 95 percent
The grandaddy of social network gaming has checked its suspiciously bubble-like pace for the first time.
Zynga’s latest quarterly financial filings, as reported by Gamasutra, reveal the Farmville and Mafia Wars publisher’s profits dropped year-on-year by 95 percent, from $27.2 million to $1.3 million.
In revenue terms, Zynga saw a 15 percent increase, a less stellar performance than its March posting of 24 percent growth.
More concerning than a decline in growth is a pair of twinned decreases – Zynga’s monthly average users dropped by four percent in the last quarter, and so did its virtual goods sales, down from $286.6 million to $274.7 million.
Zynga noted increased competition, the transition to Facebook credits with accompanying 30 percent revenue share, and lack of new releases as factors contributing to a less than brilliant quarter.
Zynga is set to make its initial public offering shortly, and is seeking $1 billion in the process.