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Finance

Zynga: We can double paying players

Fri 09 Dec 2011 8:49am GMT / 3:49am EST / 12:49am PST
Finance

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.

4 Comments

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:2 years ago

#1

Sam Maxted Journalist / Community / Support

155 65 0.4
I'd be interested in hearing what kind of evidence Mr Pincus is basing this on, giving the company's overall stagnant userbase. It's all very well pointing towards Words With Friends, but that's hardly looking at thhe big picture.

Posted:2 years ago

#2

Josh Jonsson Studying Bcomm/CompSc, University of Calgary

7 1 0.1
BS these games suck, they make children cry and old men yearn for the days of yore when men were men and life was worth living.

Posted:2 years ago

#3

Michael Vandendriessche Studying Computer Science, K.U. Leuven

85 12 0.1
@Dr. Chee Ming Wong: I've wondered that for years. One of the mysteries of games.

It seems like everyone neglects revenue from non-paying members. I don't know that much about zynga, they're probably already doing this. But with that high number of players, it looks more beneficial to me to focus more on that group.

Posted:2 years ago

#4

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