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Zynga still keen on real-money gambling despite Q4 losses
The world's leading social games developer Zynga has posted its first results since going public in December 2011.
The results point to a massive $435 loss of income in the fourth quarter of 2011, bringing the company's total losses for the year to $404 million.
This despite an overall leap in total revenue of 59% to $311.2 million, according to Forbes.com.
The loss is however to be seen in the light of a $510 million tax charge and other costs related to Zynga's IPO in December.
Overall, the company keeps expanding, the report revealed, with staff numbers rising a full 92%.
Zynga is also reported to be increasingly keen on turning its attention towards the potentially very lucrative real-money online gambling market.
The company already operates some of the world's most popular free-to-play games like Facebook's Texas Hold'em Poker with more than 30 million monthly users, but could be taking the jump towards real gambling soon.
Zynga admitted last month to be actively exploring online gambling partnership opportunities, and according to statements from Chief Operations Officer, John Schappert, the company continues to look towards expansion of its current operations.
Online gambling is "very interesting", Schappert told Forbes following the announcement of the Q4 results.
"I think it's actually a very interesting opportunity because we're in an unique position. We have the world's largest online poker game and the most social online poker game we've been running for four years. We had record results last quarter. And it's on of the top six games on Facebook. So I think we're in a very good position and it's a category that's interesting to us," Schappert said.
The results point to a massive $435 loss of income in the fourth quarter of 2011, bringing the company's total losses for the year to $404 million.
This despite an overall leap in total revenue of 59% to $311.2 million, according to Forbes.com.
The loss is however to be seen in the light of a $510 million tax charge and other costs related to Zynga's IPO in December.
Overall, the company keeps expanding, the report revealed, with staff numbers rising a full 92%.
Zynga is also reported to be increasingly keen on turning its attention towards the potentially very lucrative real-money online gambling market.
The company already operates some of the world's most popular free-to-play games like Facebook's Texas Hold'em Poker with more than 30 million monthly users, but could be taking the jump towards real gambling soon.
Zynga admitted last month to be actively exploring online gambling partnership opportunities, and according to statements from Chief Operations Officer, John Schappert, the company continues to look towards expansion of its current operations.
Online gambling is "very interesting", Schappert told Forbes following the announcement of the Q4 results.
"I think it's actually a very interesting opportunity because we're in an unique position. We have the world's largest online poker game and the most social online poker game we've been running for four years. We had record results last quarter. And it's on of the top six games on Facebook. So I think we're in a very good position and it's a category that's interesting to us," Schappert said.
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Comments
311
3 months ago
Im surprised Zynga games has posted a $435 million loss for the fourth quarter of 2011. I was under the impression that zynga is miliking its farmville customers and raking in decent revenue from its online poker offerings with playchips. I think if zynga starts real money gambling it will be a massive boost to their revenue, of course the legal impact of having to deal with us laws, deposits and withdrawals thats the main challenge for zynga. Once again im surprised its a loss they have declared i was under the impression this is a cash generating company.
178
3 months ago
Yeah, that is crazy, but it sounds like it is from taxes from their IPO. I know it is useful to go public, but if they would have stayed a private company they could have probably had a larger profit and wouldn't have to be accountable to shareholders.
That being said I did like Zynga poker when I was first starting out playing online poker.
That being said I did like Zynga poker when I was first starting out playing online poker.
67
3 months ago
I thought zynga was just a play chip game on facebook. had no idea it was for real money. i would never play for real cash on there, worst card playing i think i have ever seen to be honest.
49
3 months ago
I tryed playing on Zynga.
i couldnt do it.
i dont like that site.
and i will not go back to playing on it ether.
i couldnt do it.
i dont like that site.
and i will not go back to playing on it ether.
824
3 months ago
Omg Zynga poker was the most famous app on facebook i dint expect them to make such a loss maybe it was due to too much marketing and ppl used to play only with play money
463
3 months ago
That number seems a bit inflated. How long until we see a post of Zynga showing good first quarter profits next quarter?
113
3 months ago
The cost of advertising has got to be the number one source of the money leakage. As well as an overabundant staff and recruiting of talent.
171
3 months ago
What the heck would they be advertising that brings them revenue that costs so much to put them in a hole? How do you have a record quarter and still lose money? Zynga is a joke and won't be the premier poker site of the future. Especially because the US government can;t get it's sh_t together.
4
