Zynga on Thursday announced it is closing its China studio as the social games pioneer reported earnings that disappointed investors.

Zynga shares dropped more than 10 percent to $2.39 in after market trades that followed release of news that it lost $45 million in the final quarter of last year despite gaining ground on mobile devices.

Closing operations in China, where Zynga has 71 employees, was expected to save the San Francisco-based company seven million dollars annually.

Zynga chief executive Don Mattrick was encouraged by increases in mobile bookings as well as the ranks of people playing the company’s games such as FarmVille, Words with Friends, and recently-launched Looney Tunes Dash.

“2014 was a year of progress for Zynga – we came together as one team and applied more discipline and rigor to our business,” Mattrick said.

“In 2015, we will focus on three priorities: driving mobile growth, launching more products in more evergreen categories and building on our social legacy.”

He said Zynga will make a priority of launching games for smartphones and tablet computers and that the company has a healthy balance sheet with $1.1 billion in cash to give it “staying power.”

Revenue for the quarter was less than Wall Street had expected, and the company’s forecast regarding earnings in the current quarter also disappointed.

The company rose to stardom by tailoring games for Facebook, but has struggled as the two firms have grown apart and Zynga lagged in adapting to a shift to games played in applications on smartphones and tablets.

ALSO READ  Azerbaijani forces advance in key city despite suffering heavy losses overnight

 

AFP

Share this article:
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Notice: All comments represent the view of the commenter and not necessarily the views of AMN.

All comments that are not spam or wholly inappropriate are approved, we do not sort out opinions or points of view that are different from ours.

This is a Civilized Place for Public Discussion

Please treat this discussion with the same respect you would a public park. We, too, are a shared community resource — a place to share skills, knowledge and interests through ongoing conversation.

These are not hard and fast rules, merely guidelines to aid the human judgment of our community and keep this a clean and well-lighted place for civilized public discourse.

Improve the Discussion

Help us make this a great place for discussion by always working to improve the discussion in some way, however small. If you are not sure your post adds to the conversation, think over what you want to say and try again later.

The topics discussed here matter to us, and we want you to act as if they matter to you, too. Be respectful of the topics and the people discussing them, even if you disagree with some of what is being said.

Be Agreeable, Even When You Disagree

You may wish to respond to something by disagreeing with it. That’s fine. But remember to criticize ideas, not people. Please avoid:

  • Name-calling
  • Ad hominem attacks
  • Responding to a post’s tone instead of its actual content
  • Knee-jerk contradiction

Instead, provide reasoned counter-arguments that improve the conversation.