Zynga Forecasts $103 Million Loss

The poster boy for casual gaming, Zynga, has announced it expects to posts a loss of $103 million for the Q3 period (July-September) this year.

Minutes after the announcement the share price for the company fell 20% to $2.19. The company initially floated at $10 a share and rose to $16 a share at one point.

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Zynga are blaming the majority of loss on the write off of half the cost of purchasing OMGPOP, the publishers of Draw Something.

Analysts are said be “stunned” by the announcement, “They’ve got 3,000 plus people and for the level of revenue they’re generating, we should expect massive layoffs at Zynga,” commented Sterne Agee analyst, Arvind Bhatia.

The company has adjusted their yearly earnings to a range between $147 million and $162 million, previously they had forcast $180 million to $250 million. These figures do not include tax, interest and depreciation so once they have been taken out of the profit there will be even less for shareholders.

Source: Reuters

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5 Comments

  1. OMGPOP..

    Zyng! O.o

  2. Good.

  3. Serves the theiving sods right. I look forward to EA destroying them in the court.

  4. Did I read that right? Zynga, the money printing Facebook casual game developer, who introduced micro transactions to perform more repetitive tasks and push notifications to get friends to spend their money as well, is losing money? Feel sad for the employees who’ll lose their jobs, and for the fact that won’t change the gaming landscape (actually, they changed it!), but interesting news anyway.

  5. Good. They are the worst the industry has to offer, imo.

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