(Updates drop in share price, adds details on new games,
By Malathi Nayak
SAN FRANCISCO Aug 7 Zynga Inc on
Thursday reported unexpectedly weaker second-quarter bookings,
and slashed its 2014 forecast after saying it had delayed
several games including a revamped version of "Zynga Poker."
Shares in the San Francisco-based mobile gaming company,
known for the "FarmVille" game, were down 9 percent in
after-hours trading on the Nasdaq after ending Thursday's
session up 13 cents at $2.92.
In an interview with Reuters, Zynga Chief Executive Officer
Don Mattrick said the company had examined its new product
pipeline and "decided that the best choice for the medium and
the long term was to move that revenue effectively from 2014 to
"Moving revenue is on one hand is clearly discouraging
....but we are being consistent against our lens of medium- to
long-term choices for the benefit of customers and
shareholders," Mattrick said.
Other delayed titles included "Words with Friends" and
mobile games from Natural Motion, a studio it acquired for $527
million in January.
Zynga, however, announced it had entered into a licensing
deal with the National Football League to release a mobile
football game called "NFL Showdown" in select countries. It will
be its first sports gaming title.
Zynga also said it now expects 2014 bookings, or deferred
revenue, in the range of $695 million to $725 million, compared
with its previously announced forecast of $770 million to $810
million. Analysts had expected $801 million in deferred revenue
in the second quarter, according to Thomson Reuters I/B/E/S.
Zynga's number of active monthly players dropped to 130
million in the second quarter, from 187 million in the
Since taking on the top leadership role at Zynga last July,
Mattrick has set in motion efforts to expand the company's
mobile game offerings as sales from its Web offerings on
Facebook deteriorated last year.
The company also said on Thursday it has partnered with golf
star Tiger Woods to release a new mobile game, which is in
development, in 2015. Moreover, through a partnership with
Warner Bros. Interactive Entertainment, Zynga will bring gamers
a mobile game based on the popular cartoon show "Looney Tunes"
before the holiday season.
Zynga executives told analysts on an earnings call that its
current efforts would gradually take hold and that mobile
bookings surpassed Web bookings for the first time in the second
"The majority of benefit is going to come in 2015," Mattrick
(Reporting by Malathi Nayak; Editing by Paul Simao and Lisa