Zynga Sales Top Analysts’ Estimates on Mobile, Ad SalesRob Golum
Zynga Inc., the money-losing maker of the FarmVille video game, posted third-quarter sales that exceeded analysts’ estimates, buoyed by higher advertising and more play on mobile devices.
Revenue fell to $176.6 million, San Francisco-based Zynga said today in a statement. That beat the $166.6 million average of analysts’ estimates compiled by Bloomberg. Bookings, the value of virtual goods sold during the quarter, grew 15 percent to $175.5 million.
Once the leader in casual video games, Zynga is working to generate more of its business from mobile devices, such as smartphones and tablets. Mobile bookings more than doubled from a year earlier and grew to 55 percent of the total, Zynga said. Ad sales advanced 32 percent from a year ago.
The loss for the quarter narrowed to 1 cent a share excluding items, in line with analysts’ estimates.
For the current period, Zynga projects revenue of $170 million to $200 million, along with results excluding items ranging from a loss of 1 cent a share to profit of 1 cent. Analysts predict a break-even quarter. Bookings will be $183 million to $213 million.
Zynga rose 0.4 percent to $2.36 at the close in New York. The stock has declined 38 percent this year.
(Zynga plans a conference call at 5 p.m. New York time. Listen at http://investor.zynga.com.)
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