Zynga shares reached a new low as a recent securities filing showed third quarter losses between $90 million and $105 million, which translates to roughly 12 to 14 cents per share.
Analysts had expected third quarter results to be somewhat better, with many industry experts anticipating the online games maker to at least break even, foxbusiness reported. Shares are now at an all-time low of $2.25, continuing a downward spiral since going public in December at $10 per share.
Online games such as “Farmville” were all the rage just a short time ago, but the popularity has seemingly faded on some of Zynga’s games in which players purchase virtual goods in order to succeed in building virtual farms and cities. Much of Zynga’s success had come via free-play games on Facebook, but Zynga has made moves recently to wean itself from its dependence on Facebook by concentrating on mobile gaming and its own network of online games, Zynga.com.
Zynga is expected to enter the real-money online poker and gambling market in early 2013. Its most recent forays to that end have been the hiring of Maytal Ginzburg Olsha, formerly the Senior Vice President of Corporate and Regulated Markets at 888 Holdings, which is the parent company of 888 Poker. Last month, Zynga signed an agreement with Scientific Games, an applicant in Nevada’s intrastate online poker format, allowing for sales of lottery tickets to Zynga’s 320 million monthly gamers, including players of Zynga Poker.