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Monday, April 30, 2012

New Arcade Game, More Ad Rewards Next Up for Zynga

farmville

If you like CityVille's new trend of rewarding players with energy and other virtual goods in return for watching an ad, good news: Zynga plans to expand the practice to other properties.

The company also plans to market its second arcade game this quarter and "monetize" Zynga Bingo further, executives said during a conference call Thursday afternoon.

And, not unexpectedly, fans of Zynga's latest acquisition of OMGPOP's "Draw Something," can expect to see that franchise expanded over the next few quarters, they said.

Zynga reported second-quarter earnings on Thursday afternoon. Revenue grow by 32 percent to $329.2 million, with monthly average users (MAUs) growing by 24 percent. But the company reported a $85.4 million loss, dragged down by stock expenses.

In addition to the increase in MAUs to 292 million, daily average users (DAUs) climbed 6 percent to 62 million. Neither of those figures were impacted much at all by the Draw Something acquisition, as it came too late in the quarter to have any real impact.

Executives mentioned several times how significant it was that its games appear on the charts of top downloads at the Apple App Store, and that its core games, including CityVille, FarmVille, and Zynga Poker continued to draw in revenue over time. Expansions, such as Hawaiian Paradise for FarmVille, Airports and Islands for CityVille, and Parties and Alliances for CastleVille are being launched over time, executives said.

Mobile, however, remains the future. "We think that mobile is the same place we saw the Web," chief executive Mark Pincus told analysts.

"We're really focused this year on getting the product experience right and our network distribution... and getting our hits to market," Pincus added. He added that the mobile ad experience was in the "very early days" and wasn't necessarily as compelling and engaging as it should be.

"We want to focus on that first and the monetization will follow," Pincus said.

More of Zynga's game plans will be unveiled this summer at its annual Zynga Unleashed event, Pincus said.

For more from Mark, follow him on Twitter @MarkHachman.

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