Have you ever noticed how many people are playing games on their smartphones on the commute into work?
And if you haven’t noticed, then that probably means you’re too busy gaming on your own phone.
Mobile gaming is now a popular pastime – and it’s not just teenagers and those in their 20s who are addicted to playing games on their phones. Even the baby boomer generation can frequently be seen glued to their handset playing Solitaire or Candy Crush.
Social game developer Zynga was behind one of the most successful online games of recent times – Farmville, where players could create and cultivate their own farm, caring for an array of (digital) farmyard animals.
The company is also behind games including Dawn of Titans, Word with Friends, Games of Thrones Slots Casino and several Farmville spin-off games.
If you know you are a fan of Zynga’s online gaming offering, is it time to consider investing in the San Francisco-based company?
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Frank Gibeau, formerly of gaming company Electronic Arts, was hired as CEO of Zynga in 2016, taking over from founder Mark Pincus. He has continued to help Zynga remain relevant in the world of social gaming.
Just this month (June), Zynga launched a game called Tiny Royale exclusively on Snapchat, demonstrating that it is not just able to use Facebook as a platform for its games and widening the scope for driving advertising revenues.
Tiny Royale is a multiplayer shooter game, so players can choose a character to play with friends or battle solo – the idea is you shoot and loot your way to victory.
Taking a closer look at its financials, a performance overview for the first quarter of 2019 saw Zynga report that revenues were up 27% year-on-year.
Figures for mobile revenue look particularly healthy. The company declared its best mobile revenue and bookings performance in “Zynga history”, with mobile revenue of $246m – a 35% increase year‐over‐year.
Mobile gaming now accounts for 93% of total revenue.
Zynga’s share price was recently boosted by the news that the business has just sold its San Francisco headquarters for $600m, which means it now has cash to splash. The question is, on what?
The share price is currently trading at $6.50 and had fallen to around $1.80 back in early 2016.
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Past performance is not an indication of future results. Your capital is at risk.
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