Zynga slashes net loss, but revenue drops

Zynga reported a smaller-than-expected net loss Thursday and named a new chief operating officer as the struggling social games maker continued to try to turn itself around.

Zynga whittled its third-quarter net loss to $68,000, from $52.7 million in the same quarter last year.

But revenue declined to $202.6 million, compared with $316.6 million in the 2012 quarter. More significantly, the number of average monthly users decreased 57 percent, dropping from 311 million at this time last year to 133 million.

Nonetheless, CEO Don Mattrick said he was pleased with the company’s performance during the first full quarter under his watch, and said the company expects to be profitable for the full year after standard accounting adjustments for items such as interest, taxes, depreciation and amortization.

“We are seeing sight lines to growth, and I am proud of the progress that we are making to compete more aggressively on the Web, make our move to mobile and develop new hits,” Mattrick said in a conference call with analysts. “We are rewiring our organization for success by taking a longer-term view on everything we do, which will help us to create value for our customers, our shareholders and our employees over the next decade.”

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