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“Uncool” Zynga posts $US52.7 million loss despite a 3.2% increase in sales

Social media gaming company Zynga has posted a $52.7 million loss for the third quarter, but beat analysts’ estimates with a 3.2% increase in sales.

According to Bloomberg, Zynga announced a 3.2% increase in sales to $US316.6 million, significantly beating the analysts’ average estimate of $US291.5 million.

The stronger than expected sales led to a 12% increase in the company’s share price, despite reporting a net loss of $52.7 million.

In the statement, Zynga also announced a partnership with real-money online gaming company Bwin.Party Digital Entertainment to offer online gambling services in the UK, as well as a $US200 million stock buyback.

The results come at the end of a tough quarter for the social media sector, with Facebook reporting a $US59 million quarterly net loss earlier this week, despite growing mobile advertising revenues.

The results come after a recent survey showed that US teenagers are tiring of social media gaming.

smartcompany.com.au

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Andrew Sadauskas

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