REUTERS: Zynga raised its full-year bookings forecast after topping quarterly estimates on Wednesday (Aug 5), encouraged by strong engagement from stuck-at-home players and its recent acquisition of Turkish mobile-game maker Peak.
The company said it would also acquire an 80per cent stake in Istanbul-based hyper-casual game maker Rollic for US$168 million in cash, about two months after its US$1.8 billion acquisition of Peak, the maker of games like "Toon Blast" and "Toy Blast".
"It is a great way to acquire users," Zynga Chief Executive Officer Frank Gibeau told Reuters, noting that hyper-casual is the fastest growing category on mobile right now.
Rollic, known for games like Go Knots 3D and Tangle Master 3D, will also add to Zynga's ad sales. The mobile game maker said it would acquire the remaining 20 per cent of Rollic at valuations based on specific profitability goals over the next three years.
The FarmVille-maker has been strengthening its hold on the fast-growing mobile gaming market through a slew of acquisitions and licensing agreements with media outlets to publish themed games of popular franchises.
Besides games like Empires & Puzzles and Merge Dragons!, Zynga is also known for its portfolio of social casino games like Game of Thrones Slots Casino.
User spending on mobile games surged in the past few months along with broader videogame sales, as people turned to games to keep themselves entertained and connect virtually with friends while under coronavirus-led lockdowns.
Global mobile gaming revenue surged 27 per cent to US$19.3 billion in the second quarter, according to analytics firm Sensor Tower, with user spending peaking in May.
Zynga raised its full-year 2020 bookings to US$2.2 billion from US$1.8 billion, above analysts' estimate of US$1.85 billion, according to Refinitiv IBES data.
It reported bookings of US$518.1 million for the second quarter ended Jun 30, beating estimates of US$503.2 million.