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Social gaming firm battles declining player interest and revenues.
The once mighty US social gaming firm Zynga has cut its earnings forecasts and delayed the launch of the much publicised upgrade for Zynga Poker and other games after worse than expected quarterly results and declining player interest.
Revenues for the second quarter fell 33.5 percent to $153.2 million, with revenue for the six months ending June 30 down 35 percent to $321.3 million.
Year-on-year, the firm saw its active player numbers shrink from 187 million to 130 million, and now anticipates that deferred revenue for 2014 will be in the range $695 million to $725 million, substantially lower than the previous guidance of between $770 million and $810 million.
News of the disappointing results and consequences triggered a 9 percent fall in the company's share price this week.
The upgraded poker software and other games, including new mobile offerings from subsidiary Natural Motion, will now be delayed, possibly for months, judging by a Reuters report quoting chief executive Don Mattrick, who suggested that the expected revenues from these games would be moved to the 2015 financial year.
On the bright side, Zynga's deal with the US National Football League represents the promise of a new mobile game titled NFL Showdown in the future, and there is talk of a new mobile game based on top international golfer Tiger Woods.
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ATlantic City August 2014 Numbers and Earnings -
August figures released by the New Jersey Division of Gaming Enforcement show that August was in general another downer for Atlantic City land casinos, with revenues dropping a further 1.2 percent y-o-y and another closure.
FUlltilt Poker Launches Live Casino -
Full Tilt players will also have access to a variety of Evolution’s generic Live Roulette, Blackjack, Baccarat and Casino Hold’em tables and to Evolution’s VIP suite of live tables.
Senet Group New Gambling Industry Watchdog -
In extensive newspaper announcements this morning, four major UK bookmaking groups - William Hill, Ladbrokes, Coral and Paddy Power – named the new independent industry watchdog they have founded....after an ancient Egyptian game.
Ex Zynga Employee Starting Social Casino -
Zynga's highly experienced top exec for social casino operations, Maytal Ginsburg Olsha, is to strike out on her own with a new social casino enterprise scheduled for launch early next year.
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