Zynga to Lose Up to $105M In Q3, Slashes 2012 Forecast
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Zynga to Lose Up to $105M In Q3, Slashes 2012 Forecast

Zynga has released its preliminary numbers for its third quarter, which ended on September 30, 2012. Zynga expects to report revenue between $300 million and $305 million and losses between $90 million and $105 million. The majority of the losses are due to the acquisition of Omgpop, the Draw Something developer, in which the company had to write off $85 million to $95 million.

Zynga has also lowered its project for its full 2012 fiscal year. The company now expects its booking in the $1.085 billion to $1.100 billion range, down from $1.150 billion to $1.225 billion.

"The third quarter of 2012 continued to be challenging and, while many of our games performed to plan, as a whole we did not execute to our satisfaction," said Mark Pincus, CEO and Founder, Zynga. "We're addressing these near-term challenges by implementing targeted cost reductions in the fourth quarter and rationalizing our product R&D pipeline to reflect our strategic priorities."

"At the same time, we are continuing to invest in our mobile business where we have one of the strongest positions in the industry," Pincus continued. "These actions support our strategy to transition from being a first party web game developer to a multiplatform game network."

"We remain optimistic about the opportunity for social gaming and the power of our player network of 311 million monthly active users," added Pincus. "When we offer our players highly engaging content, they respond. FarmVille2 has been our most successful launch since CastleVille in terms of daily bookings, and we now offer 3 of the top 5 most popular mobile games in the U.S. in terms of time spent according to Nielsen."

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VGChartz

Contributor: VGChartz   Posted: Oct 4, 2012 at 11:01pm
Gaming Category: Gaming News
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