Revenues grow at Zynga following Gram Games acquisition
News on 7 Aug 2018
News on 7 Aug 2018
Online games developer and operator Zynga has posted a 7 percent rise in Q2-2018 revenues, which it attributes to the growth in its mobile gaming business.
Total revenue amounted to $217 million and bookings climbed 12 percent to $233.9 million, the company revealed in its report.
Whilst revenues were up, the company reported a previously anticipated 11 percent year-on-year drop in adjusted EBITDA, as well as a loss of $900,000, compared to profit of $5.1 million in Q2 of last year.
Zynga acquired mobile games developer Gram Games for $250 million in May this year, reporting that the acquisition’s titles have in total recorded 170 million downloads (see previous report). The company believes the acquisition will have further positive impact on its Q3 numbers.
“We anticipate that our year-over-year growth will benefit from full quarter contributions from our Casual Cards and Gram Games acquisitions as well as strength across our forever franchises,” the Zynga quarterly predicted, but cautioned.
“We continue to expect our sequential and year-over-year progression to be affected by declines in web and older mobile games.”
Management reiterated its strategy to grow Zynga in four approaches: delivering growth in live services; building new games with the goal of creating forever franchises; investing in emerging mobile technologies; and exploring M&A opportunities that will enhance growth potential.
