Zynga profits fall by 95%; Revenues increase

Posted By | On 26th, Sep. 2011 Under Industry News, News | Follow This Author @KartikMdgl


 

Zynga’s profits have fallen by 95%, which probably means the bubble will burst soon. Zynga has published Farmville and Mafia Wars on Facebook and the profits from this year declined from $27 million to $1.5 million.

Which is bad news, right? But their revenues have increased by 15% compared to 24% last year. Zynga is expanding and that could be a reason for such low profits this year. Zynga blamed the lack of profit on competition and lack of new releases.

Zynga will make a public offering shortly and is asking for $1 billion.

Thanks, Desructoid.


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  • Ehh, I think you’re going to see a lot of this. These companies spring out of no where thanks to 1 good idea, but when users move on to the next gimick – if it happens that the company in question isn’t behind the new gimick… then… they’re screwed. Then they sink and the new company rises. Such is the life of a company who makes time distractions as their only source for income.


 

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