Social Slots Drive Zynga to Profitable Q2
Zynga, the once dominant social gaming giant, posted a profitable Q2 2017 on the strength of its social slots products. Word that Zynga is operating in the black is the first good news the company has seen in a very long time.
But before you applaud the return of the creators of Farmville and Zynga Poker, you’ll want to know that company officials are already warning of reduced revenue for Q3.
Earlier this week Zynga reported revenue of $209 million for Q2. That represents a 15 percent jump over the Q2 2016. Besides posting increased revenue, the company had a profit of $5.1 million for the same period. That’s a major improvement over Q2 2016, when Zynga showed losses of $4.4 million.
On the ground,or in cyberspace, where sales actually, Zynga benefited from its very active user base. Zynga players spent 20 percent more on in-game sales than they did this time last year, according to a report on CalvinAyre.com.
Not surprisingly, a good share of Zynga’s revenue came from mobile bookings, which were $179.9 million from this time last year. Mobile revenue accounted for a whopping 86 percent of Zynga’s revenue total for the quarter.
Zynga also saw success in its social slots division, which posted its highest earnings ever. Revenue in that department was up 6 percent over the previous year’s earnings.
Finally, Zynga Poker recently celebrated its tenth birthday with an astonishing 61 percent growth in its mobile earnings.
Zynga’s good news quarter may, in fact, be its last one for a while. Company officials are already tempering expectations for another stellar quarter in the fall.