Zynga shares plunge on disappointing results

City A.M. Reporter
Shares in gamemaker fell 20 per cent in after-hours trading yesterday after it warned on profits.

The San Francisco-based social gaming developer expects to report a net loss of between $90m and $105m (£55.6m and £64.9m) in the third quarter.

Zynga said the results “primarily reflect weakness of certain games in our web ‘invest and express’ category”, and include an estimated impairment charge between $85m and $95m before income tax related to the intangible assets in the
company's acquistion of OMGPOP.

Zynga bought the New York games developer for a reported $200m in March.

"The third quarter of 2012 continued to be challenging and, while many of our games performed to plan, as a whole we did not execute to our satisfaction,"said Mark Pincus, chief executive and founder.

"We're addressing these near-term challenges by implementing targeted cost reductions in the fourth quarter and rationalising our product R&D pipeline to reflect our strategic priorities.”