Zynga: We can double paying players
CEO Mark Pincus tells investors that 7.7 million unique paying player count could rise after IPO
Mark Pincus, Zynga CEO, has told investors the social gaming company could double the number of gamers paying for content after its imminent IPO.
He revealed that paying customers make up less than three per cent of Zynga's player count, with just 7.7 million considered unique paying players, said Reuters.
"We could see that doubling," Pincus told an investor's lunch.
The CEO also revealed that in a year Scrabble game Words With Friends had seen a 8 million rise in player numbers, and that 18 million daily average users of Zynga products are now on mobile.
While investor queries about player retention were played down, CFO David Wehner also addressed investors, telling them Zynga was aiming for an EBITDA margin of around 40 per cent.
According to a separate report from Bloomberg, Zynga has already received sufficient orders to shift all 100 million shares on offer. Zynga has chosen not to comment on the report.
In an S-1 filing last week Zynga set its share price at between $8.50 and $10, demonstrating that the massive $20 billion valuation originally estimated for the company had fallen to around $7 billion.
This sounds great and all, but for the life of me, why would anyone with good common sense pay for in game assets on free to play games (which tends to end up costing x 3- 10 the normal cost of a decent game). It simply absolutely boggles the mind.
Posted:A year ago