Zynga dilemma: Import dividend depletion transition difficult

Zynga dilemma: Import dividend depletion transition difficult

Social gaming company Zynga today released its third-quarter results for fiscal year 2013. The report showed Zynga's third-quarter revenue was $203 million, down 36% from $317 million a year earlier, with a net loss of $68,000 and a net loss of 52.7 million dollars over the same period last year. Zynga's third-quarter results were outpacing Wall Street analysts ' expectations, boosting its share price sharply up nearly 13% per cent.

In the quarter ended September 30, Zynga's net loss was $68,000 trillion, which was a profit-and-loss performance, far better than the same period last year. In the third quarter of fiscal year 2012, Zynga lost $52.7 million in net loss of $0.07 per share. Not in accordance with U.S. general accounting standards, Zynga's third quarter adjusted net loss of $16.215 million trillion, a net loss of $361,000 in the same period last year, a loss of 2 cents per share, and zero earnings per share in the same period last year. Zynga's third-quarter adjusted earnings per share was better than analysts had expected, with analysts on average expected to lose 4 cents per share in the third quarter, according to a Thomson Reuters survey.

Zynga's third-quarter revenue was $203 million, down 36% from $317 million a year earlier, down 12% from the previous quarter, but beyond analysts ' expectations. Analysts on average expect Zynga's third-quarter revenue to be $189.6 million, according to a Thomson Reuters survey. Zynga's third-quarter online gaming revenue, by sector, was 174.3 million U.S. dollars, down from $285.6 million a year earlier, with ad revenues of 28.21 million dollars, down from $31.05 million a year earlier.

Zynga's third-quarter adjusted EBITDA (net profit before interest, tax, depreciation and amortization) was $7 million trillion, at $16 million a year earlier, and $8 million in the previous quarter. Zynga's third-quarter bookings, the sum of its current revenue plus current deferred income, was 152 million dollars, down 40% from a year earlier, down 19% from the previous quarter. Among them, the third-quarter network bookings 106 million U.S. dollars, the same period last year, 205 million U.S. dollars, the previous quarter of 138 million U.S. dollars, mobile bookings for 46 million U.S. dollars, the same period last year for 51 million U.S. dollars, the previous quarter of 50 million U.S. dollars.

Monthly active users fell 57% year-on-year

Zynga's daily active users in the third quarter were 30 million, down 49% from 60 million in the same period last year, with a monthly active user of 133 million, down 311 million from 57% in the same period last year, and 97 million per cent for the monthly number of independent users, down 177 million per cent from 45% in the same period last year. Zynga's third-quarter monthly independent pay subscribers were 1.6 million, down 46% from 3 million in the previous quarter. Zynga's average daily earnings per dau (active daily) in the third quarter was $0.055 trillion, up 17% from $0.047 a year earlier. In the third quarter, Zynga counted $7 million trillion in restructuring spending, linked to the company's closure of a particular office, and a $10 million trillion in writedowns that were linked to the intangible assets acquired earlier in many mergers and acquisitions.

As of September 30, 2013, Zynga's holdings of cash, cash equivalents and valuable bonds amounted to about USD 1.52 billion, slightly below the 1.53 billion U.S. dollar as at June 30, 2013, which was roughly unchanged from the 1.6 billion USD to June 30, 2013. Zynga's third-quarter cash flow from business operations was $5 million trillion, at $30 million a year earlier. Zynga's third-quarter free cash flow was $6 million trillion, at $17 million a year earlier.

In the first 9 months of this year, Zynga has a revenue of 700 million dollars, it was $970 million a year ago, with a net loss of $117 million, a net loss of $161 million a year, a loss of $0.01 per share and a loss of $0.22 per share in the same period last year; It was 0.06 dollars; it was adjusted to 43.9 million US dollars, compared with $168 million a year earlier.

Performance Outlook

Zynga expects In fiscal year 2013, revenue was $175 million to USD 185 million, net loss was $21 million to 31 million USD, loss of $0.03 to 0.04 USD per share, bookings to 130 million USD to 140 million USD; The U.S. general accounting standards for each share loss is expected to be 0.04 U.S. dollars to 0.05 U.S. dollars.

Appointment of new chief operating officer

Zynga also announced in Thursday that it had appointed a guest to Fu Donny (Clive Downie) as chief operating officer and that it would come into effect from November 4, 2013. Prior to joining Zynga, Downey was the chief executive of Dena West, a global leader in mobile social gaming services Dena. Previously, he also served as Vice president of marketing and revenue for mobile gaming company Ngmoco, a company that was Dena acquired in October 2010. Before joining Ngmoco, Downey worked for EA in 15 and served as vice President of marketing for the company. In addition, he has been in many management positions in Mattel.

After joining Zynga, Downey will report directly to the company's chief executive, Tang Matrick (Don mattrick).

On the same day, Zynga fell 0.0050 U.S. dollars in regular trading in the Nasdaq market, at $3.54, or 0.14%. Zynga's shares rose 0.46 US dollars to $3.99, or 12.87%, in a subsequent trading transaction up to 17:28 (5:28 Beijing time, 25th). In the past 52 weeks, Zynga's highest share price was $4.03, with a minimum price of $2.09.