Industry News
Zynga revenue and forecast come up short, but big-name games in the works
Mobile-game specialist lands licensing deals for ‘Harry Potter’ and ‘Game of Thrones’ games that help stock recover after earnings
Zynga Inc. reported a slight miss on its most widely watched sales metric and projected holiday results lower than analyst expectations Wednesday afternoon, but promised a brighter future with a slate of games based on popular intellectual property including “Game of Thrones” and “Harry Potter”.
The San Francisco mobile-gaming company reported net income of $10.2 million, or a penny a share, on revenue of $233.2 million, up from a loss of less than $1 million a year ago on revenue of $217 million. Analysts on average expected a GAAP loss of a penny a share. Bookings, Zynga‘s preferred metric that adds the net increase in deferred revenue to actual sales, came in at $248.9 million, slightly higher than Zynga’s forecast but lower than the average analyst forecast of $250.1 million, according to FactSet. Zynga blamed lower-than-expected net deferred revenue for that miss, explaining that the sales mix resulted in $15.6 million in deferred revenue gains after its forecast called for $30 million.
Zynga (ZNGA) shares fell more than 3% in immediate late trading after results were released, but eventually rebounded to end the after-hours session up 0.3%. The stock has declined 8.9% so far this year, while the S&P 500 index has increased 0.3%.
Zynga stressed the success of reaching its near-term margin goals earlier than expected and success in mobile ads in its announcement, but the turnaround was more likely influenced by details on a new slate of games based on licensed intellectual property. The company said it has reached a deal with HBO for two games based on the “Game of Thrones” franchise and with Warner Bros. for a “Harry Potter” themed game, with the first games from those deals expected in the second half of 2019.
That adds to an agreement Zynga struck with the Walt Disney Co. (DIS) in August to develop new “Star Wars” mobile games and a new game based on “Willy Wonka and the Chocolate Factory” that is debuting this week.
In an interview with MarketWatch, Chief Executive Frank Gibeau said that Zynga expects to launch at least five new games next year and that Zynga’s work this year to land licenses for popular content “will pay off in future years very effectively.”
Most of that return is down the road, however, and Zynga’s forecast for the fourth quarter came in lighter than expected. Zynga projected a net loss of $2 million on bookings of $250 million for the holiday season, while analysts on average were expecting a GAAP profit of 2 cents a share on bookings of $268.4 million.
Industry News
SKS365 keeps investing in people: GROW People Management Program took the next level
11 experienced people managers from the SKS365 group’s 4 locations gathered last week in Belgrade for the new GROW People Management Program. From 15 th to 19 th of April, through trainings, discussions, and social connections, people had the opportunity to further grow individually and as a team, while enjoying Belgrade’s city center and rivers.
Created in 2023 with the purpose of building foundation people management skills across the organization, GROW initiative evolved this year by including a new, advanced program for experienced people managers to further consolidate their skills and prepare for future opportunities.
Building and fostering connections, sharing experiences, and enjoying team building experiences – all these activities have been part of the GROWpmp agenda for the 11 people managers coming from Commercial, Product and Development, Finance, and Sportsbook departments of the group’s 4 locations – Malta, Italy, Austria, Serbia.
GROWpmp included a variety of topics that people managers in SKS365 recognized as the key areas for management development. Topics such as influence through communication, team effectiveness, DEI, through to presentation skills and business topics like understanding finance and management reporting, were delivered with the support of external professionals and internal experts, while designed and organized by the SKS365 People & Culture team.
Industry News
Kindred’s Share of Revenue from High-risk Players Shows Slight Increase
Kindred Group plc’s (Kindred) share of revenue from high-risk players showed a slight increase to 3.2% (Q4 2023 3.1%) in the first quarter of 2024. Compared to the first quarter of 2023, the high-risk revenue share decreased marginally. The percentage of detected customers who exhibited improved behaviour after interventions came in at 87.1% (compared to 87.4% in Q4 2023 and 83.0% in Q1 2023). This sustained trajectory in the improvement effect after interventions, observed over an extended period, serves as a testament to the strong dedication and collective efforts throughout the company. It reflects Kindred’s ongoing commitment to fostering positive change within the industry.
“We continue to see our share of revenue from high-risk players fluctuate quarter to quarter, and we are working closely with all teams across the company to support customers towards a more sustainable gambling experience. However, it is encouraging to see that our Journey towards Zero data has steadily decreased since 2020. A similar trend can be seen across the healthier gambling behaviour effect after interventions. This tells us two things: our work is paying off, but we need to continue to push ourselves to propel a sustainable progression,” Alexander Westrell, Director of Communications at Kindred Group, said.
“It was very encouraging to witness the open and transparent discussions at the Sustainable Gambling Conference in London on 20 March, where those with lived experience shared their important stories. Also, it is evident that technology is moving forward, and will provide greater opportunities to detect and intervene in the future. We hope to see more regulators engage with the industry and with experts to secure a more sustainable industry for everyone,” Alexander Westrell added.
Industry News
PENN Entertainment Names Aaron LaBerge as Chief Technology Officer
PENN Entertainment announced that Aaron LaBerge has been named Chief Technology Officer (CTO) effective July 1, 2024, subject to customary regulatory approvals. Mr. LaBerge will report directly to PENN CEO & President Jay Snowden.
In his new role, Mr. LaBerge will be responsible for driving the technology strategy and execution for PENN, while leading the multinational team of technologists and serving as the key business leader for the company’s Interactive division.
Mr. LaBerge spent more than 20 years at The Walt Disney Company, in two stints separated by five and a half years as a technology entrepreneur. He was most recently President & Chief Technology Officer for Disney Entertainment and ESPN where he was responsible for driving all technology and product development in support of The Walt Disney Company’s two media divisions. In that role, he helped set the vision and strategic leadership for how Disney uses technology to enable storytelling and innovation, drive its business, and create unparalleled consumer experiences with entertainment and sports content.
“We are thrilled to have someone of Aaron’s caliber join our PENN executive team. Having overseen a global organization of thousands of engineers, product developers, designers, technologists, and data scientists that created some of the largest scale and most successful media properties in the world, there is no better candidate to lead our Technology and Interactive division into its future. I know Aaron is looking forward to working with Todd George, our head of operations, and our entire Executive Team to continue growing our position as a leader in online gaming, sports betting, and digital sports media,” Mr. Snowden said.
“I’m excited to join another talented team at PENN Interactive and lead our technology strategy. PENN Entertainment is at the forefront of the fast-changing gaming and sports media industry. I plan to use my experience from Disney and ESPN to help make ESPN BET an essential piece of the sports fan experience. Together, we’ll push the limits and redefine how fans interact with sports and gaming,” Mr. LaBerge said.
Prior to his most recent role at the Walt Disney Company, Mr. LaBerge was Executive Vice President and Chief Technology Officer at ESPN from 2015 to 2018. At ESPN he played an instrumental role in the growth of ESPN’s consumer-facing digital media products and services – leading many of ESPN’s most ambitious and challenging projects and helping establish ESPN’s position as the leader in digital sports and innovative sports technology development. He was a key architect in the design, development, and engineering of ESPN’s state-of-the-art facilities in Bristol, CT; Los Angeles, CA; Charlotte, NC; and Austin, TX, as well as data centers and infrastructure that connect those facilities around the world, as well as the technology design and development to support the launch of the multi-platform SEC Network.
Between 2007 and 2012, LaBerge was co-founder and CEO of Fanzter, Inc. – a venture-funded consumer software and digital product development company. At Fanzter, he directed all day-to-day operations and led the development and launch of a variety of consumer-focused internet and mobile products, ground-breaking social and commerce technologies and more.
-
Latest News5 days ago
THE UNIT APPOINTS ADAM NOBLE AS CHIEF COMMERCIAL OFFICER
-
Gaming5 days ago
The German Games Industry Association congratulates all winners of the German Computer Game Awards 2024
-
Baltics5 days ago
MARE BALTICUM Gaming & TECH Summit Announces Final Agenda for 2024 Event
-
Latest News5 days ago
INSPIRED LAUNCHES VIRTUAL SPORTS WITH COMEON GROUP
-
Africa5 days ago
NE Group powers 888bets launch in Angola
-
Industry News5 days ago
Wazdan set to gain more ground at Casino Beats Summit Malta
-
Central Europe5 days ago
Apparat Gaming and edict egaming announce partnership
-
Cryptocurrency4 days ago
Payhound empowers LSports with a seamless solution to receive payments