Profits leap to €2.5m at Irish division of game firm Zynga
Pre-tax profits at the slimmed-down Irish unit of online game firm Zynga last year increased almost sixfold to $2.97m (€2.5m).
The firm has slashed its workforce here but the company continues to generate substantial revenues which hit $231m last year. This represented a 10pc drop on the $257m in revenues in 2015.
Zynga is a leading provider of social game services and more than one billion people have played one on their games including 'Farmville', 'Zynga Poker' and 'Words with Friends'.
In 2015, Zynga announced a cost-reduction plan with job cuts totalling 297 worldwide or 18pc of the workforce.
However, proportionally, Zynga's Irish operation was hit much harder with its Dublin base losing 22 or 60pc of its staff.
At end of December last, the company's workforce here had reduced further to six and staff costs last year totalled $582,394.
There was no further redundancy payout last year following a payout of $381,930 in 2015.
The company develops, markets and operates hosted online social games played over the internet and on social networking sites and mobile platforms. It earns revenue primarily from the sale of virtual goods to the players of its online games.
The directors' report stated: "There is a decline in revenues driven by a global decrease in sales year over year mainly due to a decrease in user-pay bookings as well as revenues from certain games decreasing.
"Revenues from many of the company's games tend to decline over time after reaching a peak of popularity and player usage."
The directors state that a small number of games have generated a majority of the revenues. Throughout 2016, 10 games were launched with two more in the first half of this year.