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Zynga has big expectations of acquisitions
Zynga has cited ongoing growth in its mobile gaming business as the key reason behind a 8% increase in revenue during the second quarter, while the social gaming company also reported better-than-expected results elsewhere.
Revenue amounted to $217m (€187.4m) and bookings climbed 12% to £233.9m.
Zynga saw 7% year-on-year revenue growth within its mobile business during Q2, with this part of the group now responsible for 89% of total revenue.
The revelation comes after Farmville creator Zynga bolstered its mobile arm offering in Q2 when it acquired mobile games developer Gram Games for $250m. Gram Games titles have collectively been downloaded more than 170 million times worldwide.
In a statement, Zynga said the Gram Games deal, as well as its acquisition of Casual Cards last year, will have more of an impact on business during the third quarter.
“We anticipate that our year-over-year growth will benefit from full quarter contributions from our Casual Cards and Gram Games acquisitions as well as strength across our forever franchises,” Zynga said in a statement.
“We continue to expect our sequential and year-over-year progression to be affected by declines in web and older mobile games.
Despite revenue growth, Zynga did report an 11% year-on-year drop in adjusted EBITDA, as well as a loss of $900,000, compared to profit of $5.1m in Q2 of last year.
However, Zynga was seemingly happy with the result, saying that the adjusted EBITDA figure was above guidance by $7.7m. Similarly, Zynga said net loss was some $14.1m ahead of initial forecasts.
Zynga added: “Looking forward, we remain committed to growing Zynga in four ways; delivering growth in our live services; building new games with the goal of creating forever franchises; investing in emerging mobile technologies; and exploring M&A opportunities that will enhance our growth potential.
“We’re excited about how we’re executing against our growth strategy as we prioritise delivering value to our players, employees and investors.”