Written by :
Published on :
Zynga, which runs the world’s biggest free-to-play online poker room, slashed its outlook after trading.
The company expects full-year EPS of 4 to 9 cents vs. estimates of 26 cents (for 2012). Earnings were significantly less than expected: The company reported earnings of 1 cent a share on revenue of $332 million.
Analysts had expected 5 cents a share on revenue of $344 million, according to an estimate from Thomson Reuters.
Since buying OMGPOP for about $210 million, Zynga's daily users have fallen from about 70 million to just more than 55 million.
News broke this week that the company was now entertaining bids to offer a “real cash” platform.
Zynga's stock is down from a high of $14.69 this year, and is now trading at about $5.00 since Facebook's initial public offering.
Also on Wednesday, the Las Vegas Sands Corporation, led by billionaire casino magnate Sheldon Adelson, also failed to meet 2012 2Q expectations.
Las Vegas Sands reported a profit of $240.6 million, down from $367.6 million a year earlier. Per-share earnings fell to 29 cents from 45 cents last year.
Net revenue rose to $2.6 billion from $2.3 billion.
Analysts expected earnings of 60 cents per share on revenue of $2.8 billion, according to Thomson Reuters I/B/E/S.
- Aaron Goldstein, Gambling911.com Business
