Posted on July 25, 2012 AT 09:24pm
Zynga continues to face setback after setback ever since going public and joining the stock market, this time posting a $22.8 million net loss in sales for the second quarter of their 2012 fiscal year. Ever worse, Facebook’s stocks took a hit as a direct result.
It’s a trend that isn’t getting any better for the social gaming developer, as this brings their 2012 total net losses over $108 million dollars just for 2012 alone.
According to Zynga’s latest financial reports, the numbers are going to directly affect their development schedule with delays and scaled back projects:
We are lowering our outlook to reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something.
It’s been a telling trend that Zynga’s value continues to dip now that the company is no longer a private entity, especially after pinning a large portion of their financial hopes on Draw Something becoming more popular than it was before OMGPOP’s buyout. However, it seems like Zynga’s adoption of the smaller developer has had the opposite effect, as Draw Something reportedly lost five million users a month shortly after the buyout.
Zynga still manages to make a lot more money than their closest competitors, though, as they still posted a $332.4 million income for Q2 2012, which is better than their $279.1 million mark last year in the same three months. However, the main headline of the day has been their net loss in sales, and according to the Washington Post, Facebook suffers every time Zynga’s stocks take a dive.
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