“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.