Zynga, the social gaming outfit, has reported record profits in the first quarter of this year irrespective of the ongoing pandemic. Early last week, the gaming giant reported that it collected a revenue of a cool $404 million in the first three months of 2020, which is a 52% increase as compared to the last year over the same period. However, the rising costs of operations after several merger acquisitions resulted in a net loss of about $104 million. Even so, this number is still an improvement compared to the first quarter of 2019 where the company recorded a net loss of $128.8 million.
The company’s gaming revenue alone was $344.3 million, which is an impressive 72% increase thanks to the release of a host of new slot titles and bored slot players who got stuck at home because of the coronavirus shutdown. Zynga’s advertising revenue, however, stood at $59.4 million, a 9% decrease given that companies put a hold in their marketing because of the epidemic.
In the report, Zynga indicated that its biggest gaming growth propellants were Merge Magic, Merge Dragons, Game of Thrones: Slot Casino,Empire, and Puzzles slot machines. They also added that their Social Slots portfolio attained record bookings and revenue in the first quarter, with Hit it Rich Slots being one of the biggest overachievers.
The revered Zynga Poker franchise also had a good quarter which wasn’t measured as the company no longer relies heavily on the poker’s revenue, but instead flanks it with the other well-performing products like Words with Friends. Likewise, the social slots revenues aren’t easy to quantify as they are now merged with a range of other titles in the company’s portfolio.
Zynga also projected a $400 revenue for the second quarter of the year with about $32 million in earnings and $60 million in a net loss. Additionally, the company’s annual projections stand at $1.65 billion in revenue with $210 million in earnings and a $245 million net loss.