The CEO of social gaming firm Zynga shocked investors throughout the world by announcing that the California based firm would not attempt to offer real money online gambling services within the United States.
The announcement was made by the company's new CEO Dan Mattick, and caused the stock price to drop 16% in the process. "Zynga is making the focused choice not to pursue a license for real money gaming in the United States. Zynga will continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings," Mattick said.
Although the company is pulling out of any potential American real money offerings, the firm is apparently still committed to its British and European real money offerings.
Zynga also revealed its second quarter fiscal results. Key financial indicators for the period were:
Revenues dropped 31% y-o-y to $231 million
Active monthly player declined to 187 million (Q2-2012: 306 million) - Zynga's lowest since mid-2010. Monthly web numbers were 129 million and mobile was at 57 million.
A 1 cent per share loss, compared with a 1 cent profit a year ago.
$188 million in bookings - a measure of the value of virtual goods bought by players during the three-month period ending June 30, and a 38% drop from Q2-2013's $302 million.
Monthly unique payers were 1.9 million, down from 4.1 million a year ago and down 22% from the previous quarter.
On the plus side, the company has $1.5 billion in cash and investments, and Zynga’s average daily bookings per average daily user grew from $0.046 in the second quarter 2012 to $0.053 in the second quarter 2013, up 14% from a year ago.