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Zynga's mobile 'forever franchises' contribute to Q2 growth

Zynga's mobile 'forever franchises' contribute to Q2 growth

August 1, 2018 | By Emma Kidwell

Zynga has released a financial report for its second quarter ended June 30, showing that the company now generates 90 percent of its revenue from mobile games, due to strong performances from mobile versions of Words With Friends, Zynga Poker, and CSR2. 

The company reports overall revenues were $217 million in the second quarter, up from $209.2 million a year earlier. Bookings were $233.9 million, up 12 percent from $209.2 million a year earlier.

While the company experienced a net loss of $911,000, it turned out to better than the original $15 million loss the company had projected, even if that's a pretty substantial discrepancy. 

Mobile revenue was up 7 percent year-over-year and mobile bookings were up 17 percent year-over-year, driven primarily by Zynga's live services with a partial quarter of bookings contribution from acquiring the mobile studio Gram Games back in May

The report also shows that Facebook desktop web games are no longer a big component of the company, as it only generated 10 percent of revenue this past quarter, falling 16 percent from last year. 

Zynga also notes that it's leaned on "forever franchises" to carry the numbers, with bookings from Words With Friends, Zynga Poker, and CSR2 up 49 percent, 21 percent, and 13 percent, respectively, on a year-over-year basis.

 Merge Dragons, the casual mobile game included in the Gram Games acquisition, could be a potential "forever game" as it boosted the company’s bookings forecast. 

Daily active users were down from 25 million to 23 million compared to last quarter, but up from 21 million year-over-year, likely due to changes on the Facebook platform and the removal of some older Zynga titles.

Looking toward the future, Zynga is forecasting third quarter revenues down 3% to $218 million, bookings up 16% to $248 million, and a net loss of $21 million.

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