Yesterday, Zynga published its quarterly financial report. The company’s losses amounted to a record $52.7 million.
For the third quarter, Zynga’s total revenue increased by a meager 3% to $316.6 million, while the company’s loss actually amounted to one-sixth of all earnings and is equal to $52.7 million ($0.07 per share). For comparison, in the last quarter, the company’s loss was $0.36 million.
Recall that during the reporting period, 12 key top managers left the company, including marketing director Jeff Karp, Chief Operating Officer John Schappert and creative director Mike Verdu.
Now the company has started some kind of anti-crisis measures. On Tuesday, Zynga announced that it would reduce its staff by 5%, stop supporting 13 games, and is also going to close offices in Boston, Japan and the UK. These measures will help to save about $15-20 million in the current quarter.
Zynga has already bought its own shares worth a total of $200 million in order to stop the decline in market value.
In the near future, the company plans to conclude a partnership agreement with the British bwin.party, which allows developers to implement a game for money into their applications. Perhaps Zynga plans to develop an existing project – Zynga Casino.
Yes, Zynga is also preparing to launch its own advertising platform.
“Although the last few months have been difficult for the company, it has a chance to capitalize on the growing popularity of social games, where Zynga is still the leader,” says CEO Mark Pincus.