Zynga Restructure Focus Includes Social Casino Products

Published Thursday, May 07, 2015 - Online-Casinos.com
Zynga Restructure Focus Includes Social Casino Products

It is reasonable to think that when a firm appears to be advancing in the right direction that its share price may edge upwards. It is also reasonable to assume that if share holders are not happy with a company performance the firm may lose ground on the financial front. This up and down business norm is very evident in the case of the online gambling developer and supplier Zynga. The relationship that the company had with social networking offering Facebook disappeared but not until Zynga had gained  prominence with  games, such as Farmville, which became very popular. The game company has struggled since it cut ties with Facebook and did not move fast enough on offering mobile gaming to consumers. Zynga reported a loss of $46.5m (£30.5m) in the first quarter of 2015 but with that revenue increased by 9% to $183m.

Good news for the investors in Zynga is that the mobile offerings were becoming more attractive to users and the strategy is working with the growth Zynga’s casino gambling products. Zynga maintains that the number of people using its mobile games daily has increased 18% since last year. Zynga shares surged more than 11% after the firm reported a loss less than what was expected and it plans to cut costs by letting 18% of its workforce go.

Returning as CEO of Zynga founder Mark Pincus said in a statement, "This was a hard but necessary decision and I believe this plan puts us in the best long-term position for success." This decision would lead to the loss of 364 jobs but $100m in cost savings for the ailing game developer. There are a number of strategic areas that the company intends to focus on including, action strategy games, casual games, and social casino products. The newest mobile offering available on the iOS and Android platforms from Zynga is the strategy game Empires and Allies.

 

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