Zynga Beats Estimates, Raises Full-Year Forecast, Announces Another Acquisition

Reuters  |

Image: Empires & Puzzles: RPG Quest. Source: Zynga.

(Reuters) - Zynga Inc raised its full-year revenue forecast after topping quarterly estimates on Wednesday, encouraged by strong engagement from stuck-at-home players and its recent acquisition of Turkish mobile-game maker Peak.

The company’s shares jumped nearly 10% in extended trade, after gaining about 64% this year through Wednesday’s close.

Zynga said it would also acquire an 80% stake in Istanbul-based hyper-casual game maker Rollic for $168 million in cash, about two months after its $1.8 billion acquisition of Peak, the maker of games like “Toon Blast” and “Toy Blast.”

“It is a great way to acquire users,” Zynga Chief Executive Officer Frank Gibeau told Reuters, noting that hyper-casual is the fastest growing category on mobile right now.

Rollic, known for games like “Go Knots 3D” and “Tangle Master 3D,” will also add to Zynga’s ad sales. The mobile game maker said it would acquire the remaining 20% of Rollic at valuations based on specific profitability goals over the next three years.

The “FarmVille”-maker has been strengthening its hold on the fast-growing mobile gaming market through a slew of acquisitions and licensing agreements with media outlets to publish themed games of popular franchises.

Besides games like “Empires & Puzzles” and “Merge Dragons!” Zynga is also known for its portfolio of social casino games like “Game of Thrones Slots Casino”.

User spending on mobile games surged in the past few months along with broader videogame sales, as people turned to games to keep themselves entertained and connect virtually with friends while under coronavirus-led lockdowns.

Zynga raised its full-year 2020 revenue forecast to $2.2 billion from $1.8 billion, above analysts’ estimates of $1.85 billion, according to Refinitiv IBES data.

Stocks To Watch in 5G Wireless Growth Wave

It reported revenue of $518.1 million for the second quarter ended June 30, beating estimates of $503.2 million.

Reporting by Ayanti Bera in Bengaluru; Editing by Shailesh Kuber.

_____

Source: Reuters

Stock price data is provided by IEX Cloud on a 15-minute delayed basis. Chart price data is provided by TradingView on a 15-minute delayed basis.

Trending Articles

Cisco Down 12% in Premarket Trading Thursday After Top Line Miss and Lower Forecast
Under Armour CEO Patrik Frisk To Step Down in Surprise Announcement
Target Hits 52-Week Low After Missing Badly on First Quarter Earnings
DLocal Posts Record Q1, Fifth Consecutive 100%+ Revenue Growth Quarter
Another Crypto Winter Wipes Out Billions in Market Value
Inflation + Recession = Recipe for Volatility
Twitter Down 13% in Premarket Trading Friday as Musk Puts Deal on Hold
The Best Laid Plans of Mice and Men — Part I

Market Movers

Sponsored Financial Content