FarmVille Maker Zynga Beats Revenue Forecasts, But Also Declares Loss
“FarmVille” game creator Zynga Inc. has just announced its earnings results for the second quarter of 2015, which ended last June 30. The company is more than pleased to beat expectations and continues to push for more game launches this year.
Zynga’s revenue for the second quarter amounted to $200 million, representing a sizable increase of 30%. In 2014, the revenue was around $153 million. Moreover, the company’s online game revenue increased by 24% to $162 million. During the first quarter of 2015, Zynga’s online game revenue only increased by 10%.
However, the video game developer also suffered a net loss of roughly $27 million. This, nonetheless, is an improvement from the its loss during the 2014 second quarter of about $63 million.
During the quarter, Zynga has also implemented a cost reduction plan that delivered savings amounting to as much as $100 million. Moreover, bookings for the quarter also amounted to $174 million, which is well above the high end of the forecast range.
Meanwhile, mobile bookings have also increased by as much as 30% year-over-year for Zynga. It also now accounts for as much as 66% of the company’s overall bookings amounting to $115 million.
Recently, Zynga had also announced that Frank Gibeau had joined the company’s Board of Directors. Gibeau, a former Executive Vice President at Electronic Arts Inc., is a veteran in the entertainment and gaming business with almost 25 years of experience.
As of the moment, Zynga is set to launch a number of games including “Dawn of Titans,” “CSR2” and “Slots.” Meanwhile, the company has also recently launched “FarmVille: Harvest Swap” and “Empires & Allies.”