Zynga whacked as losses widen to US$62 mil.
August 9, 2014, 12:01 am TWN
SAN FRANCISCO--Zynga said Thursday it wants to perform better, as the social games firm reported losses widened and revenues sank in the past quarter, sending its share price tumbling.
The loss for the past quarter deepened to US$62.5 million, compared with a deficit of US$15.8 million in the same period a year ago.
Revenues dropped sharply to US$153 million in the three months ending June 30, from US$230 million a year earlier.
Shares in Zynga tumbled nearly eight percent to US$2.69 in electronic trades after the news, reflecting investor disappointment.
Zynga also lowered its outlook for 2014 "primarily to reflect the delayed launch of new games and features," according to its earnings statement.
The company rose to stardom by tailoring games for Facebook, but has struggled as the two firms have grown apart and Zynga seeks new sources of revenues.
The San Francisco company announced it is launching a new line of sports games under the brand "Zynga Sports 365."
Zynga said it signed a licensing deal with the National Football League and NFL Players Inc. to use real NFL teams and athletes,
The company also signed a multi-year partnership with Tiger Woods for golf-themed games expected to debut on mobile devices in 2015.
And Zynga announced a deal with Warner Bros. Interactive Entertainment to license the Looney Tunes brand for mobile games expected to be launched later this year.