Shares are down 19% in post market trading following the disclosure that the company behind FarmVille and other popular Facebook games will report a net loss of as much as $105M in Q3 — a period when some analysts expected it to break even. Zynga “did not execute to our satisfaction,” founder and CEO Mark Pincus says. The company cited weakness in its Internet “invest and express” category, which includes games such as FarmVille and CityVille where players try to earn objects that they can display in the game. Zynga also says it will take an impairment charge of as much as $95M connected to its $180M acquisition this year of online multiplayer game site OMGPOP. In addition, Zynga is lowering its financial forecasts because it has taken longer than it anticipated to launch new games, and its web game The Ville could fall short of earlier expectations. “We’re addressing these near-term challenges by implementing targeted cost reductions in the fourth quarter and rationalizing our product R&D pipeline to reflect our strategic priorities,” Pincus says. He’s still optimistic about new opportunities for mobile games as well as “the opportunity for social gaming and the power of our player network of 311 million monthly active users. When we offer our players highly engaging content, they respond.” Zynga has lost more than 70% of its market value since it went public at the end of 2011.
Zynga Shares Dive After Game Maker Says It Will Report Q3 Loss
What's Hot on Deadline
'Westworld' Finale Postmortem: EP Jonathan Nolan On Season 2's Samurai World, Missing Characters & Dr. Ford's Fate
Shake-Up At 'Duck Dynasty' Producer Gurney Productions: Founders Placed On "Temporary Leave Of Absence"
'Fantastic Beasts' Bests $600M WW; 'Moana' Mints $180M; 'Doctor Strange' Ices 'Deadpool', 'Iron Man 2' - Intl Box Office
Latest Business News
- Note To Oscar Host Jimmy Kimmel: Johnny Carson’s Suit Patterns Are Up For Sale
- L.A. Ramping Up Security After Threat To Universal City Metro Station
- Music Manager & Pharrell Williams Collaborator Rob Walker Joins UTA
- Post-Thanskgiving Plummet Knocks Stuffing Out Of Broadway Box Office
- Viacom CEO: It’s Time To Focus On Growth Potential Following Year-Long “Drama”
- Bill Cosby Dealt Legal Blow As Judge Rules Depositions Can Be Used In 2004 Rape Trial