Zynga posts impressive revenue growth following Gram Games acquisition

Zynga, the California-based online games provider which created the popular Farmville game, has posted a 7 per cent rise in revenues. The company attributed the rise in revenues to the growth in mobile gaming business.

The total revenue amounted to $217m (€187.4m) and bookings climbed 12 per cent to £233.9m.

The announcement comes after Zynga acquired mobile games developer Gram Games for $250m. Gram Games titles have collectively been downloaded more than 170 million times worldwide.

In a statement, Zynga said the Gram Games deal, as well as its acquisition of Casual Cards last year, will have more of an impact on business during the third quarter.

“We anticipate that our year-over-year growth will benefit from full quarter contributions from our Casual Cards and Gram Games acquisitions as well as strength across our forever franchises,” Zynga said in a statement.

“We continue to expect our sequential and year-over-year progression to be affected by declines in web and older mobile games.”

Despite revenue growth, Zynga did report an 11 per cent year-on-year drop in adjusted EBITDA, as well as a loss of $900,000, compared to profit of $5.1m in Q2 of last year.

However, Zynga was seemingly happy with the result, saying that the adjusted EBITDA figure was above guidance by $7.7m. Similarly, Zynga said net loss was some $14.1m ahead of initial forecasts.

Zynga added: “Looking forward, we remain committed to growing Zynga in four ways; delivering growth in our live services; building new games with the goal of creating forever franchises; investing in emerging mobile technologies; and exploring M&A opportunities that will enhance our growth potential.”

“We’re excited about how we’re executing against our growth strategy as we prioritise delivering value to our players, employees and investors.”