Social and mobile gaming firm Zynga has reported revenues of $182m (E160.7m) in the first quarter of the year, with mobile bookings and adjusted EBITDA both coming in above guidance levels.
In a statement, CEO Frank Gibeau said the improvements in the company’s performance were down to a stringent cost-cutting plan as well as strong momentum in the social gaming division of the business.
“Since joining, the biggest surprise for me has been how much operating leverage we have across the company, which we can unlock with improved planning, more focused execution and cost control,” he said. “That means putting in place more disciplined, consistent development practices and more cross team collaboration. Over the long term, there’s no reason why Zynga’s margins can’t be more in line with its peers.”
The developer, whose output includes popular social games such as Words with Friends and FarmVille, saw bookings grew by eight percent year-on- year to $182m (E160.7m), while EBITDA of $11m (E9.7m) exceeded expectations.
“We’re committed to improving our operating leverage and cost management to attain those levels,” Gibeau added. “Longer term, we’re building a world class studio and innovative creative culture. In my experience, the best games in the world are made by small, complete teams with great chemistry who build games in a predictable and profitable way.”