Revenues at Irish operation of Zynga increase five-fold
Revenues at the Irish arm of gaming company Zynga, the maker of Farmville and other online games, increased five-fold last year to $369.4m (€284.7m) as pre-tax profits topped $4.8m.
According to accounts just filed by Zynga Ireland Ltd to the Companies Office, pre-tax profits increased by 420pc from $922,358 to $4.8m in the 12 months to the end of December 2011.
The San Francisco-based firm only established its Dublin base in 2010 and the filings show that the $369m in revenues generated last year accounted for 32pc of Zynga's global 2011 revenues of $1.14bn.
The revenues compared to $70.1m in 2010, which was for a 10-month period.
The company develops, markets and operates hosted online social games played on social networking sites and mobile platforms such as Facebook, iPhone and Yahoo.
The company earns revenue primarily from the sale of virtual goods of the players of its online games.
Facebook is the primary distribution and payment platform for Zynga's games and, last year, Zynga accounted for 11pc of Facebook's revenues.
Zynga's best-known games include Farmville, Zynga Poker, Mafia Wars and CityVille. last year Farmville accounted for 27pc of Zynga's revenues.
Zynga has more than 240 million monthly active users playing its games.
However, it's not all good news for company. Earlier this month, Zynga's share price reached a new low after it slashed its 2012 outlook for a second time on the poor performance of its live internet games and a write-off of an acquisition.
Established in 2007, Zynga went public last December but has since lost three-quarters of its overall market value.
The figures show that numbers employed at the Irish unit last year increased from 10 to 54 with 51 customer service agents and three in personnel.
Staff costs last year increased from $545,464 to $3.78m, while salaries to directors increased from $104,049 to $281,517.
The company's operating profits increased by 400pc from $1m to $5.1m, but net finance costs totalling $347,055 resulted in the company's pre-tax profits of $4.8m.
The company paid corporation tax of just $868,749, resulting in a post-tax profit of $3.9m. The figures show that Zynga Ireland's cost of sales last year of $198.4m resulted in a gross profit of $170.9m.