Thursday 19 January 2017

Profits drop sharply at online game firm Zynga

Gordon Deegan

Published 15/11/2016 | 02:30

One of Zynga's best known games is Farmville
One of Zynga's best known games is Farmville

Operating profits at the slimmed-down Irish unit of online game firm Zynga last year almost halved to $2.65m (€2.44m).

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Last year, Zynga Ireland Ltd reduced its workforce here by 60pc as part of a global restructuring of the business.

In 2015, Zynga Inc announced a cost-reduction plan that saw 297 jobs cut worldwide - 18pc of the workforce.

However, proportionally, Zynga's Irish operation was hit much harder. Its Dublin base lost 22 people or 60pc of its workforce.

Redundancy costs at the firm last year totalled $381,930.

In spite of the swingeing cut to its workforce, which totalled only seven at year end, revenues only dipped marginally last year - from $263.7m to $257m.

The revenues enjoyed by the Dublin firm represent 33.5pc of the firm's global revenues of $764m in 2015. The firm's corporation tax bill totalled $1m.

Zynga is a leading provider of social game services and its best known game is Farmville.

The firm's pre-tax profits declined by 91.5pc to $552,439 and the chief factor was investment income of $3.4m in 2014 that did not re-occur last year.

Irish Independent

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