Zynga profits fall by 95%; Revenues increase
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.