Zynga revenue rises 47%, as mobile gamers cannot play enough during an epidemic


Zynga Inc. Shares initially jumped 10% in Wednesday trading after Wednesday’s earnings, proving that once again, homegrown Americans are struggling with digital games.
The mobile-gaming company reported a $ 150 million, or 16 cents per share loss in the second quarter, with a loss of $ 55.8 million, or 6 cents per share, in the year-ago quarter.

Zynga of Zynga,
-1.17%
Revenue increased 47% to $ 452 million from $ 306.5 million a year earlier. Sales included record online game revenue of $ 388 million, 61% year-over-year. For its strong prospects, the company increased its full-year revenue guidance from $ 110 million to $ 1.8 billion.
Analysts polled by FactSet had expected to accommodate a loss of 13 cents on sales of $ 505 million.

With no foresight to look at shelter-in-place programs, Americans are increasingly turning to gaming as a new form of social media – one in which they chat together to solve a puzzle or adventure game and Can work Zynga officials say that is translating into record levels of engagement, retention and monetization.
“If you asked me on New Year’s Eve [2019]”I didn’t think that would happen,” Zynga CEO Frank Gibue told Marketwatch in a phone interview on Wednesday. “But the epidemic changed that. Gaming is very flexible during economic difficulties. This is a great way to connect. ”
According to Zynga the popular titles “Empire Puzzles,” “Merge Dragons,” “Merge Magic” and “Game of Thrones Slot Casino” were the biggest drivers of growth. The San Francisco-based company also said that it is buying developer Rolick on July 1 and has ceased its acquisition of Peak, a mobile puzzle game maker.
Zynga’s strong quarter featured rival Activision Blizzard Inc. ATVI.
-2.46%
And traditional gaming company Take-Two Interactive Software Inc. TTWO,
-0.84%
earlier this week. Activision reported second-quarter net income of $ 580 million, or 75 cents a share, compared with $ 328 million, or 43 cents a share, in the year-ago period, while Take-Two said revenue grew 54%. The record rose to $ 8.33 million.
See also: Activision Blizzard Results, Outlook Top Wall Street Projections
Zynga’s shares are up 62% this year. Comprehensive S&P 500 Index SPX,
+ 0.64%
There is a 3% improvement in 2020.

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