Zynga posts rare profit as social slots enjoy record monetization

Social gaming operators Zynga posted a rare profit in the second quarter of 2017 although it’s already warning that business will grow softer in Q3.

Figures released Wednesday show Zynga’s revenue rising 15% year-on-year to $209.2m in the three months ending June 30. Adjusted earnings were up 61% to $30m while the company posted net income of $5.1m versus a $4.4m loss in the same period last year. The pre-tax profit is Zynga’s first since Q4 2012, thanks in part to a 40% reduction in stock-based compensation expenses.

Bookings, the in-game sale of virtual items to players, were up 20% year-on-year, hitting a sum not seen in four years. The gains were driven by a record performance in mobile bookings, which rose more than one-third year-on-year to $179.9m, representing 86% of total revenue, up 10 points from Q2 2016. Average mobile daily average users (DAU) were up 28% to 19m, representing 90% of total DAU.

The venerable Zynga Poker franchise had another good quarter to celebrate its 10th birthday, accounting for 21% of overall revenue, two points higher year-on-year. While the numbers were broadly flat from Q1 2017, the poker product’s year-on-year mobile revenue was up 61% as mobile audience grew 73%.