Zynga anticipates a competitive digital advertising market

  • Zynga’s financial turnaround and transition to become a full-on mobile publisher would appear to be complete, as the company’s second quarter fiscal report has revealed its best ever mobile revenue and bookings since Zynga was founded in 2007. In Q2, Zynga easily beat guidance with total revenue of $306 million, with mobile generating $287 million, up 49% year-over-year. Mobile bookings came in at $358 million, up 69% year-over-year. Mobile accounted for 94% of total revenue versus 89% a year ago and 95% of total bookings versus 90% in Q2 2018.

    Zynga did lose $56 million during the quarter on a GAAP basis, but that was partly the result of deferred revenue. “While the release of this GAAP deferral will have a positive impact on revenue and profitability in future periods, it represented a $70 million reduction in revenue, net income and Adjusted EBITDA in the current period,” the company explained. As much as Zynga is now laser-focused on mobile, the company actually considers itself to be platform agnostic, Chief Operating Officer Matt Bromberg explained to GameDaily in a phone interview today. Zynga needs to be prepared for the future, and that future is likely to mean gaming anywhere, without restriction. Cloud gaming, subscription and streaming are changing the landscape.

    Live services were said to be the main driving force for sales, with Empires & Puzzles and Merge Dragons making $70 million in deferred revenue. Both games achieved record quarters in terms of revenue and bookings, while Words with Friends also secured its best Q2 in the franchise’s history. Mobile sales specifically brought in $287 million, which was up 49 per cent year-on-year alongside. Mobile bookings grew 69 per cent to $358 million. Zynga’s advertising revenue claimed its highest Q2 on mobile with $64 million, up 28 per cent year-on-year, while advertising bookings increased by 27 per cent to $64 million. Finally, to enjoy all the features in the game, players can Buy Zynga Chips from 777chips.com at a reasonable price.