Zynga: Mobile accounts for 20% of bookings
Zynga (NASDAQ:ZNGA) said that mobile now accounts for 20 percent of its bookings, according to VentureBeat. The figure is an increase from previous quarters but down slighty from the boost Zynga received from its OMGPOP acquisition this summer.
Zynga CEO Mark Pincus said the company's games now reach 30 percent of mobile users and that its users play 10 billion minutes a month of mobile games.
In its third-quarter earnings, Zynga reported a 5 percent drop in revenues from the previous quarter, to $317 million. However, the company did beat analyst's estimates for the quarter, despite downgrading its full-year guidance for the year earlier this month.
Earlier this month, the company had noted it would report weaker third quarter revenue than previously expected, between $300 million and $305 million.
The company's outlook continues to look grim, however. Zynga said it expects 2012 bookings to be in the range of $1.09 billion to $1.1 billion, lower than previous expectations.
"While the last several months have been challenging for us, Zynga remains well positioned to capitalize on the growth of social gaming. We're implementing a number of steps to drive long-term growth and profitability," said Pincus in a prepared statement.
During the company's earnings call, Pincus revealed that Zynga plans to launch two new Web and four new mobile titles per quarter next year. He described mobile as a real growth opportunity, noting that "we have three of the top five mobile games in the U.S. today."
"We have reorganized our game teams in the third quarter to unite Web and mobile development," added Pincus. He said all new games released in the past quarter have a tablet or mobile version, further focusing the company's efforts on mobile.
"That's a huge change for our company," he said.
In other company news, Zynga announced a new partnership with the U.K.'s bwin.party, a digital gambling operator. The two plan to release a poker option, as well as 180 other casino games that allow U.K. players to gamble for real money, in the first half of 2013.
This week, during Facebook's (NASDAQ:FB) earnings call, CEO Mark Zuckerberg reported that the games ecosystem "is not doing as well as I'd like," foreshadowing less than stellar earnings for Zynga. According to Inside Social Games, Zynga made up 43 percent of Facebook's Payments revenue in the quarter, down from a high of 63 percent of Payments revenue in 2011.
In its earnings release, Zynga confirmed that it is conducting a round of layoffs. The company said it will cut around 150 jobs, or 5 percent of its workforce. Zynga said the actions will generate pre-tax savings in the fourth quarter in the range of $15 to $20 million, excluding an estimated $8 to $12 million pre-tax restructuring charge in the same period.
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