Full Year Outlook Takes A Beating At ZyngaPreliminary Third Quarter Results Reflect Problems |
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Social game service provider giant Zynga has announced preliminary financial results for its third quarter ending Sept. 30, 2012 and in doing so has lowered its outlook for the full year.
It is expected that the company which is best known for its games such as Zynga Poker, Words With Friends, and Farmville, will report revenue in the range of $300 million to $305 million and bookings of $250 million to $255 million for the third quarter. A net loss is expected of between $90 million and $105 million.
The results are said to reflect weakness in certain games in the company’s invest and express category, and also delays in the launch of several new games.
The company blog has published a note regarding the matter which was sent from Chief Executive Officer and Founder Mark Pincus to his employees.
In it he says, “The challenges we faced in our web business in Q2 continued in Q3 and while many of our games achieved plan, we still experienced overall weakness in the invest and express category. To address this we’re further investing in other genres like casino where we already lead with Zynga Poker and blue PVP, a category we pioneered with Mafia Wars, and now have the opportunity to reinvent with the industry’s best talent here at Zynga.”
He also says, “We’re addressing these near-term challenges by targeted cost reductions and focusing our new game 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. These actions support our strategy to transition from being a first-party web game developer to a multi-platform game network.”
The company is said to have plans for real money online poker. In July, Chief Operating Officer John Schappert said, "We are actively pursuing the development of a product in real-money gaming. It is not for the U.S. — it is for international.”
Zynga is due to report full third quarter financial results on October 24, 2012.
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