Zynga Suffers 36% Drop In Third-Quarter Revenue

Social gaming company Zynga has reported revenue of $203 million (€150.4 million) for the third quarter of 2013, a 36% drop on the figures posted for the same period last year and a 12% decrease on the second quarter of 2013.

Zynga also reported a heavy loss in online gaming revenue, which came in at $174 million, down 39% on the third quarter of 2012 and a 14% decrease on the second quarter of 2013.

Farmville 2 was responsible for 22% of online gaming revenue, while Zynga Poker and Farmville accounted for 19% and 18% respectively.

Adjusted earnings before interest, depreciation and amortisation stood at $7 million for the quarter, lower than both the $8 million recorded in Q2 and the $16 million posted in Q3 last year.

Advertising revenue also dropped by 9% from last year’s Q3 figure to $28 million, while bookings also decreased to $152 million, a 40% fall on the amount recorded for the same period last year.

In addition, the number of monthly active Zynga users also decreased by 57% from 311 million in the third quarter of 2012 to 133 million in the latest quarter.

Despite the disappointing figures, Zynga did post a net loss of $68,000, significantly better than the losses of $53 million and $16 million suffered in Q3 of 2012 and Q2 of 2013, respectively.

As a result of the monthly figures, Zynga has projected fourth quarter revenue of between $175-185 million, while net loss is expected to be between $21-31 million.

Despite the figures, Zynga’s chief executive officer Don Mattrick declared himself satisfied with the firm’s performance in Q3.

“I am pleased with our Q3 performance which exceeded our guidance both in terms of bookings and adjusted EBITDA.

“We are encouraged to see sightlines to growth and expect to be profitable for the full year on an adjusted EBITDA basis.

“I am confident that Zynga is rewiring itself in a meaningful way that will strengthen the core of our business and put us back on track to achieve significant long term growth and profits.”

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