Big Chang, small Eng

26 Jul 2012 By Robert Cyran Follow @rob_cyran

The Bubble Safari creator’s Q2 results were a mess. Most popular games lost users, its recent purchase of the maker of Draw Something looks a bust and Zynga pointed the finger at Facebook for some of its woes. Their symbiotic relationship will hurt as much as it has helped.

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Zynga on July 25 swung to a net loss of $23 million for the second quarter on revenue of $322 million, a 19 percent increase from the same period last year.
The online game company warned the profit for the remainder of the year would be lower than expected, blaming “delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something”. It said 2012 non-GAAP earnings per share would be 4 cents to 9 cents a share. Analysts were forecasting 27 cents.
Zynga shares plummeted nearly 40 percent in July 25 after-market trading. Shares of Facebook, which generates about 15 percent of its revenue from Zynga, fell about 8 percent.

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