Revenues jump, profits fall at Zynga

Zynga’s revenue for the third calendar quarter nearly doubled to reach a new record, but the firm’s exorbitant investments continue to squeeze profits.

For the three months that ended on September 30th, Zynga made $307 million, driven by in-game advertising and virtual goods purchases. That represents year-on-year revenue increase of about 80 per cent for the quarter.

Yet a fourfold surge in development outlay, along with costs related to Zynga’s significant workforce expansion, has hampered profits. Net income fell 54 per cent to $12.5 million, down from $27.2 million last year. That follows a Q2 net profit drop of 90 per cent.

Develop has more details.