Narrowing losses provide a welcome reprieve for embattled Zynga
Ailing online game publisher Zynga has received some welcome reprieve from a run of bad news after reporting a lower than expected loss of $46.5m during the first quarter of 2015 after revenue increased by 9 per cent to $183m.
The news sent Zynga’s share price soaring by more than 11 per cent as investors cheered the financial improvement and welcomed plans to save a further $100m through 364 job cuts, 18 per cent of its total staff base.
Best known for its hit Farmville games which have proved popular on Facebook Zynga has struggled to replicate the success in other titles but is ready to have a fresh bash at it by readying six to eight new titles for launch in 2015.
Zynga founder Mark Pincus, recently returned to the firm, said: “This was a hard but necessary decision and I believe this plan puts us in the best long-term position for success.”
The games maker has been prioritising mobile gaming of late, increasing its customer base by 18 per cent from a year ago.