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Shares in the social gaming company Zynga were up 2 percent Wednesday morning following the release of stronger-than-expected financial numbers for the final quarter of 2012.
The company’s loss narrowed after it laid off workers and closed underperforming offices. Revenues, however, remained mostly unchanged.
The results exceeded Wall Street's expectations with shares rising nearly 7 percent in after-hours trading Tuesday evening.
Zynga, which went public in December of 20133, has announced plans to enter the “real money” online poker sector by the first half of this year.
Shares on Tuesday morning had jumped nearly 6 percent to $2.70 after Bank of America/Merrill Lynch upgraded the stock to a buy rating ahead of the company's financials being announced.
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A Breakdown of the Financials:
Zynga said Tuesday that it lost $48.6 million, or 6 cents per share, in the October-December period. That compares with a loss of $435 million, or $1.22 per share, in the same period a year earlier. Zynga began trading publicly on Dec. 16, 2011, and was privately held for most of the 2011 quarter.
Zynga's revenue was largely unchanged at about $311 million. But it was well above analysts' average estimate of $250 million, as polled by FactSet.
Zynga cut fourth-quarter expenses by two-thirds, to $274 million from $798 million.
Source: Associated Press
- Aaron Goldstein, Gambling911.com
