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Zynga (ZNGA) Partners Disney to Develop New Star Wars Game
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Zynga recently announced a partnership with The Walt Disney Company (DIS - Free Report) for the development of a new Star Wars game. The game will be developed under Zynga’s NaturalMotion studio in which the company had invested around $527 million in 2014. Zynga looks to earn the returns of the investment it had made in the studio four years back through this new deal.
Notably, apart from creating the second part of the Star Wars game, the NaturalMotion studio will also operate the first part of the game, Star Wars: Commander that Disney launched in 2014.
Zynga expects the deal with Disney to aid its presence in the gaming market. Notably, Zynga’s share price shot up 7.2% in after-hours trading on Aug 21 in response to the news.
Shares of Zynga have lost 6.5% on a year-to-date basis compared with the industry’s decline of 14.4%.
What’s Aiding Zynga’s Financials?
In second-quarter 2018, Zynga’s revenues increased 3.7% year over year to $217 million. Total bookings came in at $233.9 million, up 11.8% year over year, driven by strong mobile bookings.
Popular game titles like Words With Friends, CSR2, Zynga Poker, Hit It Rich! and Wizard of Oz performed well in the quarter.
Additionally, robust live services performance and small-scale bookings contribution from Gram Games contributed to the impressive revenue figure. Notably, Zynga had acquired Gram Games in May 2018 for $250 million. However, the buyout was dilutive to its profitability.
Notably, advertising revenues and advertisement bookings increased 17.6% and 22.1%, respectively year over year in the second quarter, which also boosted top-line growth.
We expect solid mobile revenues and successful monetization of live services to keep driving the company’s revenues northward going ahead.
Townsquare Media and Penn National’s market capitalization is currently 3.12 billion and 163.8 million, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Zynga (ZNGA) Partners Disney to Develop New Star Wars Game
Zynga recently announced a partnership with The Walt Disney Company (DIS - Free Report) for the development of a new Star Wars game. The game will be developed under Zynga’s NaturalMotion studio in which the company had invested around $527 million in 2014. Zynga looks to earn the returns of the investment it had made in the studio four years back through this new deal.
Notably, apart from creating the second part of the Star Wars game, the NaturalMotion studio will also operate the first part of the game, Star Wars: Commander that Disney launched in 2014.
Zynga expects the deal with Disney to aid its presence in the gaming market. Notably, Zynga’s share price shot up 7.2% in after-hours trading on Aug 21 in response to the news.
Shares of Zynga have lost 6.5% on a year-to-date basis compared with the industry’s decline of 14.4%.
What’s Aiding Zynga’s Financials?
In second-quarter 2018, Zynga’s revenues increased 3.7% year over year to $217 million. Total bookings came in at $233.9 million, up 11.8% year over year, driven by strong mobile bookings.
Popular game titles like Words With Friends, CSR2, Zynga Poker, Hit It Rich! and Wizard of Oz performed well in the quarter.
Additionally, robust live services performance and small-scale bookings contribution from Gram Games contributed to the impressive revenue figure. Notably, Zynga had acquired Gram Games in May 2018 for $250 million. However, the buyout was dilutive to its profitability.
Notably, advertising revenues and advertisement bookings increased 17.6% and 22.1%, respectively year over year in the second quarter, which also boosted top-line growth.
We expect solid mobile revenues and successful monetization of live services to keep driving the company’s revenues northward going ahead.
Zacks Rank & Stocks to Consider
Zynga currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader consumer discretionary sector include Townsquare Media, Inc. (TSQ - Free Report) and Penn National (PENN - Free Report) . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Townsquare Media and Penn National’s market capitalization is currently 3.12 billion and 163.8 million, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>