Please support Game Informer. Print magazine subscriptions are less than $2 per issue
Zynga's Profits Fall 95%, Everything's Still A-Okay
This week the casual game maker announced that its year-on-year profits for the quarter dropped a whopping 95%, but the company isn't worried.
Despite profits for the quarter being a measly $1.3M compared to last year's $27.2M for the same timeframe, Zynga revealed that its revenue continues to rise, landing at $279.1M for the quarter, up 15% from last quarter's $242.9M. While revenue is growing, it has slowed down some, as last quarter's $242.9M was up 24% from the quarter before it.
If your head still isn't spinning from the roller coaster ride of Zynga's financials, the company also stated that, for the first time in history, the revenue it derived from microtransactions and ads was down 4%, coming in at $274.7M compared to last quarter's $286.6M. The drop mirrors a 4% decline in daily active users, which is down to 59M users, compared to last quarter's 62M users.
So what is Zynga's positive spin on all of this? The company points to its lack of new games in early 2011, along with increased spending on acquiring other companies and growing the company internationally. After all, you've got to spend obscene amounts of money to make obscene amounts of money.
As for the future of the company; we're guessing Zynga isn't too worried about getting its daily active users back up.
[via Gamasutra]
I’d like to ask you to support Game Informer’s continued coverage of games with a subscription. For less than two dollars per issue, we mail you a full year of 10 print magazines, each with cover stories and preview features filled with exclusive details about the most exciting upcoming games. We profile and interview game creators. We look back on the rich history of gaming, and we celebrate what’s next.
Here on the website, we offer much of our content for free, including game reviews, daily news, videos, event coverage, and more – all with minimal ads.
We do so with a small editorial team, alongside contributing paid writers from around the world – over 65 individuals from 9 countries around the world, just in the last couple of years.
It’s not possible without support.
In a time when game makers and games coverage have faced hard struggles and layoffs, the future of this 30+ year magazine and community is at risk. Our new standalone magazine subscription is the number one way you can keep us alive – and we believe you’ll get a pretty fantastic gaming magazine in your mailbox every few weeks for your trouble.
Thank you.
