Zynga shares climb as game maker cuts losses
SAN FRANCISCO (AFP) - Zynga, the struggling social games pioneer, showed signs it is getting a grip on spending with an earnings report on Tuesday revealing narrowing losses, which sparked an after-hours rally in shares.
Zynga stock was up more than five per cent to US$2.90 a share after the firm reported that it lost US$48.5 million on revenue of US$311.2 million in the quarter that ended Dec 31.
The revenue was little changed from the same period a year earlier, but the loss was a fraction of the US$438 million lost in the final three months of 2011. The results topped Wall Street expectations.
"Our team executed well in the fourth quarter and made important progress in building sustainable new revenue streams and further aligning our company around our best growth opportunities," said Zynga chief operations officer David Ko. "Zynga already has the largest social gaming audience and remains the best positioned company to lead in building the future of social gaming."