Zynga - the firm responsible for massively popular online games such as Farmville and Cityville, has announced a shocking decline in its profits during the June quarter.
Overall earnings by the company for April, May and June of this year were reported at just $1.4 million - surprisingly 90 percent below what it had earned exactly one year back during the same time frame - and this, despite a pretty positive growth in the company’s revenues.
The revenues earned by the company during the June quarter were 114 percent up from the same quarter in 2010. The “bookings” were also down by 4 percent during the quarter - the first time in the company’s 4-year history.
Bookings, according to Zynga is "the fundamental top-line metric we use to manage our business, as it reflects the sales activity in a given period."
The company claims this massive fall in its profits is partly due to the high number of staff it hired during the last year as a strategic move aimed at strengthening the company’s stake in the market even further.
Meanwhile, in an unrelated development, Zynga has launched Cityville for the next-big-name in the social networking world - Google Plus too.