Zynga hit with $85 million loss

Social gaming company Zynga made a loss of $85.4 million (£527.3m) in the three months ending March 31 despite revenue increasing by almost a third.

Total revenue was $321 million (£198.3m), an increase of 32 per cent year on year, while bookings – revenue from virtual goods and ad sales before deductions, such as Facebook's 30 per cent cut – rose 15 per cent to $329 million,  a new record for the company.

User numbers rose across the board in a quarter which saw Zynga release six new games, of which four were for mobile devices. Daily active users rose 6 per cent, to 65 million; monthly active users increased 24 per cent to 292 million; monthly unique users ended the quarter up 25 per cent to 182 million.

At the end of the quarter on March 31, eight of the ten most popular games on Facebook were Zynga's. The quarter also saw Zynga launch its own social gaming platform, which will reduce its reliance on Facebook, and the acquisition of Draw Something developer OMGPOP.