Tuesday, April 24, 2012

Zynga Contributed 15% of Facebook's Revenue In Q1, Down From 19% A Year Ago


Zynga and Facebook are ever gradually trying to separate from each other. It’s working — sort of?
Facebook said today that 15 percent of its revenue in the first quarter came from either advertising or payments tied to Zynga games.* That’s down from 19 percent during the same time a year earlier.
About 11 of the 15 percent in revenue was from the 30 percent revenue share Facebook takes from transactions in Zynga games on the platform or advertising that Zynga directly paid Facebook for. Another 4 percent comes from advertising shown alongside Zynga content.
Facebook continues to emphasize that any bad blood between the two companies could hurt financial results. Zynga recently overhauled its site as a web destination for gaming that it hopes will attract users away from the Facebook canvas. The social network is still powering payments for the site, however, meaning that Zynga is still paying Facebook its 30 percent share.
“Zynga may choose to try to migrate users from existing Facebook-integrated games to other websites or platforms,” Facebook said in an updated filing for an initial public offering. “We may fail to maintain good relations with Zynga or Zynga may decide to reduce or cease its investments in games on the Facebook Platform. If the use of Zynga games on our Platform declines for these or other reasons, our financial results may be adversely affected.”

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