Zynga hits new all-time low, predicts Q3 net loss of over £50m

If recent financial results are any indication, Zynga is losing its spot as the top social games service.

Zynga said in a statement that it expects a third-quarter net loss of between $90 million (£55.9m) and $105 million (£65m), a new all-time low for the gaming service, according to Forbes.

The FarmVille creator expects third-quarter revenue of around $300 million (£186.4m), down from last quarter's $332 million (£206.3m). A write-down of up to £60 million on the value of online multi-player gaming portal OMGPOP, meanwhile, cost the company more than half of what it paid to acquire the Draw Something maker back in March.

Zynga continues to add more overall users, but it remains stuck in a struggle to make money off of them.

"The third quarter of 2012 continued to be challenging and, while many of our games performed to plan, as a whole we did not execute to our satisfaction," Zynga CEO Mark Pincus said in a statement.

Moving forward, the company will continue to focus on its mobile business, he said, while implementing targeted cost reductions in the fourth quarter.

"These actions support our strategy to transition from being a first party web game developer to a multiplatform game network. We remain optimistic about the opportunity for social gaming and the power of our player network for 311 million monthly active users," Pincus said.

In August, Bloomberg analysts suggested that Zynga start looking for a buyer in the wake of mounting pressure from shareholders. The company suffered some losses after going public in December, watching its stock plummet 70 per cent.

A formidable Facebook partner, Zynga is dragging the social network down with it, with Forbes adding that Facebook's shares were down 3 per cent.

The company's final third quarter financial results will be announced on 24 October.

In a blog post pep talk to all Zynga employees, CEO Pincus wrote that the company needs to not lose sight of the bigger picture.

"The world is playing games, and is increasingly choosing social games," he said. "We have an amazing opportunity to channel this into breakthrough new products that surprise and delight, excite and ignite our players."